How will Netflix end password sharing? Updates for 3 other countries offer insight

How will Netflix end password sharing? Updates for 3 other countries offer insight

(NEXSTAR) – Netflix has already signaled it is able to roll out some new guidelines on the subject of password sharing within the U.S. Changes rolled out in three other countries present what U.S. customers might quickly count on.

In a letter to shareholders final month, Netflix mentioned it expects to roll out paid account sharing “extra broadly” towards the end of the primary quarter of 2023. The streaming large estimates greater than 100 million households share accounts, which “undermines our long-term means to put money into and enhance Netflix.”

Executives defined within the letter that they count on some customers to cancel their accounts when paid sharing is launched however that “borrower households” will begin their very own accounts. How the paid password sharing will be enforced, and the way a lot it will price, wasn’t launched.

Netflix has been exploring ways to crack down on password sharing, together with a log-in verification course of in 2021 and the use of sub-accounts for individuals residing exterior the account proprietor’s dwelling in 2022.

The latter was examined in Chile, Costa Rica, and Peru. Netflix seems to have rolled out new guidelines on account sharing in these countries, updating its help pages for all three this week.

According to these pages, anybody throughout the account holder’s dwelling – known as their “main location” – can use that Netflix account. Those exterior the house will want to make use of their very own account.

Account holders will must set their primary location whereas signed into Netflix on a TV linked to their dwelling Wi-Fi. Then, any units linked to the Wi-Fi community within the main location will have the ability to entry the holder’s Netflix account, whereas units attempting to entry the account from any other places could also be blocked. If an account proprietor doesn’t set their main location, Netflix says it robotically utilizing their IP addresses, machine IDs, and account exercise.

Once a main location is ready, Netflix customers are requested to “watch one thing a minimum of as soon as each 31 days” with the intention to preserve their units related to the placement.

In order to share the Netflix account with somebody exterior the first location, the corporate says the account proprietor can add an additional member to their account for a small price.

Netflix customers in these three countries may be blocked from streaming on some units in the event that they attempt to entry the platform whereas touring or after transferring. In that case, Netflix says customers ought to both stream one thing earlier than leaving their main location to create a “trusted machine,” or request a brief code to confirm their machine “and proceed watching Netflix for 7 consecutive days.”

It isn’t clear how accounts with plans that permit a number of screens could be impacted by these adjustments. It additionally isn’t clear if Netflix plans to deliver the identical system to the U.S. – Netflix didn’t instantly reply to Nexstar’s request for remark.

Netflix’s transfer to sort out password sharing is a shift from the corporate’s earlier stance. Then-CEO Reed Hastings (he stepped down as CEO final month) mentioned in 2016 that Netflix wouldn’t cost customers for sharing their passwords. Instead, he referred to as password sharing “one thing you need to study to dwell with,” CNBC reports.

Hastings had additionally by no means been a fan of advertisements, calling them a distraction from the leisure the service supplies. But, in November, Netflix launched a fourth plan, “Basic with Ads,” that features an “common of 4 to five minutes of advertisements per hour.” Users on this plan additionally don’t have access to Netflix’s full library.