Netflix Implementing Stricter Measures Against Account Sharing
Netflix, one of the world's leading streaming services, is taking steps to curb account password sharing among its users. This move comes as a response to the reduction in subscription revenue due to shared accounts, estimated to affect around 100 million households globally.
The Crackdown on Account Sharing
The company has been testing restrictions on password sharing in countries like Canada, New Zealand, Spain, and Portugal. The tests have shown positive results in terms of revenue and subscriber growth, leading to the implementation of these measures in the U.S. and U.K.
Key measures include limiting the sharing of main accounts to only those living in the same primary household. Users sharing outside the household will be required to pay an additional fee to add "Extra Members" (users at different locations) to their account. The Extra Member feature is available for Standard and Premium (Ad-Free) plans, with costs ranging from $6.99 to $8.99 per Extra Member per month.
How to Avoid the Crackdown
To avoid the crackdown, users are advised to share their Netflix login within their own household only. For those sharing accounts outside their household, the official way is to add Extra Members by paying the respective fee. Users outside the household who are using an account without being added may risk losing access unless they upgrade or pay for Extra Member status.
Alternatively, users can opt to get their own subscription instead of sharing.
Consequences of Account Sharing
Users should be aware that account sharing is a violation of Netflix's terms of service. This practice can lead to increased costs for Netflix due to the need for more licenses and royalties.
The growth in popularity of streaming services highlights the importance of adhering to their terms of service regarding account sharing. Other streaming services like HBO Max are also planning similar measures to prevent unauthorized access to their content.
[1] Netflix's new plan to crack down on password sharing
[2] Netflix's new password-sharing rules: Everything you need to know
[3] HBO Max is cracking down on password sharing, too
[4] Netflix isn't cracking down on password sharing to prevent piracy
[5] Some streaming services still allow password sharing
- With the new rules, Netflix intends to integrate technology that differentiates entertainment consumption within the same household from outside sharing, aiming to monetize the latter through the Extra Members feature.
- In an effort to boost revenue and challenge the entertainment landscape, Netflix's exploration of technology to combat password sharing could potentially reshape the streaming entertainment sector.
