After suffering its worst quarter of subscriber loss in a decade, Netflix is now taking steps to curb password sharing. According to a recent letter sent to investors, the company will start charging an extra fee for accounts shared outside of households.
The company identifies account households by using information such as IP addresses, device IDs and account activity from devices signed into the same account. This will be enforced starting in early 2023.
Household Members
In a letter to shareholders last week, Netflix first hinted that it was planning to block account password sharing among household members in the future. The streaming service has been testing a paid version of account sharing in Latin American countries, which allows users to add a “sub-account” for an additional $3 per month.
While it’s not clear how Netflix will prevent password sharing, the company says it uses IP addresses, device IDs and account activity from devices signed into a Netflix account to detect devices in a household.
The company is also introducing the idea of “verified devices.” Verified devices require the main account holder to approve the device’s use within fifteen minutes, which can prevent people from sharing their accounts with unapproved devices.
The changes are intended to help the company boost its subscriber numbers that have dwindled in recent years. However, they could lead to disputes about what counts as a household and what doesn’t.
Verified Devices
Netflix is introducing new rules to prevent account password sharing among verified devices. It will use a combination of IP addresses, device IDs and account activity to determine whether a device is in a primary household or not.
The company will also ask users to verify their devices, which may involve a four-digit verification code sent via email or text message. The code must be entered within 15 minutes to approve the device.
As Netflix notes, the company is trying to curb password sharing and piracy, which has cost it millions of dollars. It also wants to increase its paid viewership as core subscription growth has slowed.
As part of this, Netflix is testing a monthly “extra member” fee for accounts that have profiles in multiple households. It’s currently testing the policy in Latin America, but it could eventually roll out globally.
Subscriptions
Netflix is launching a new Help Center page to explain how it will prevent account password sharing among subscriptions. It will use IP addresses, device IDs and account activity to detect devices within a subscriber’s household.
This policy is meant to keep people who live outside their household from using the service — which is against the company’s Terms of Use. While a device may be able to sign in for a short period of time if it’s in a different home, it will need to be verified within 15 minutes before it can be used again.
In addition, users who share their account with a non-home member will have to pay a fee for each sub-account added. This strategy has already been tried in Chile, Costa Rica and Peru — but it’s unclear whether it will catch on globally.
Privacy
With so many users signing up to Netflix, it is important to keep their privacy secure. As such, the streaming company has been working to prevent account password sharing and ensure that only people who are directly involved in the process can access their accounts.
One way to do this is by setting up a PIN, which will be required whenever a user wants to view certain profiles associated with their account. This will help keep your privacy safe and protect your recommendations from being compromised.
During the signup process, Netflix asks for your name, email address and other personal details to verify you are who you say you are. It also stores your watch history, ratings and more to help create your personalised recommendations.