Netflix has announced plans to crackdown on password sharing for accounts on its platform, such as setting up primary location and paying for an extra member.
In dire straits
It estimates 100 million people around the world use shared accounts, making a dent by way of lost revenue.
It has said that this hit to revenues from the shared accounts was affecting its ability to invest in new programming content.
“So over the last year, we’ve been exploring different approaches to address this issue in Latin America, and we’re now ready to roll them out more broadly in the coming months, starting today in Canada, New Zealand, Portugal and Spain,” the company said in a blogpost.
Rollout in different countries
Members on Netflix’s standard or premium plan in many countries can add an extra member as a “sub account” for up to two people for an extra C$7.99 a month per person in Canada, NZD$7.99 in New Zealand, 3.99 euros in Portugal, and 5.99 euros in Spain.
The platform is already charging users who are sharing accounts with friends in North America.
It is also reportedly planning to do the same in the UK by the end of March.
What about India?
The company has been grappling with a loss in subscribers in the first half of 2022 amidst stiff competition from rivals, prompting it to look more seriously into password sharing and launching an ad-supported plan.
Although India is currently not on the list, users here should still be prepared since the platform recently revealed that it plans to end password sharing in the first quarter of 2023.
India is also a key market for the company with a 5 million user base in the country although not officially confirmed.
What the changes basically mean
Netflix has assured that people who live in the same house can share Netflix accounts.
However, the company will start charging extra when these users try to share accounts with outsiders.
Indian users should note that if any family members shift elsewhere, then that person won’t be able to use the same Netflix account due to the new rules.
On its support page, Netflix says that its website uses “IP addresses, device IDs, and account activity from devices signed into the Netflix account” to learn whether devices are using an account in the same household.
Assuring investors
Netflix chief operating officer Gregory Peters last month acknowledged that the changes would not be “universally popular” and warned investors to expect some cancellations.
He assured that the firm expects to eventually make up those losses.
In the first half of 2022, Netflix saw its subscriber numbers fall sharply.
Resurgence
This had the cascading effect of cutting hundreds of jobs and raising prices to cover rising costs.
However, it also saw an unexpected rise in user numbers in the last three months of 2022, up 7.66 million, taking its total paid subscribers worldwide to nearly 231 million.
