Netflix plans to end password sharing
The world’s largest streaming service, Netflix, is prepared to pause many users sharing a single account to end the practice of password sharing.
It will begin pestering clients to pay more if it notices that they are sharing their account with people outside of their household, which is against the terms of service for the streamer.
According to a statement made by the business in October, Netflix expects to launch “a smart method to monetize account sharing” in early 2023, going beyond its initial test regions in Latin America.
To pay for persons outside of their homes, password-sharers will be enticed to set up sub-accounts (called “Extra Members”).
However, Netflix hasn’t yet stated how much a second member sub-account will cost. That fee reportedly ranged from 23 to 29% of the Netflix Standard two-stream plan in Chile, Costa Rica, and Peru, indicating that sub-account prices in the US may be between $3.50 and $4.50 each.
According to Variety, Netflix has informed customers in the three test markets who seem to be sharing their account with someone outside of their home (as determined by information like IP addresses, device IDs, and account activity from devices signed into the Netflix account) about the new payment options.
Additionally, Netflix has asked customers to confirm their login information by sending a verification code to the main account holder.
What happens if piggybackers don’t get off?
For now, all signs indicate that the most aggressive Netflix intends to get in the first iteration of the paid-sharing rollout is to keep prodding violators with email reminders and notifications.
Why is Netflix restricting password sharing?
The Covid-led lockdowns prompted people to stay at home and shut down theaters, which resulted in an increase in users for the streaming behemoth. However, this year’s global reopening resulted in a sharp decline in Netflix’s subscriber base.
Due to intense competition and the conflict in Ukraine, Netflix reported losing roughly 200,000 subscribers in the first quarter of 2022.
The corporation had stopped offering its services in Russia, which cost it 700,000 consumers. The company lost the most members ever—nearly 1 million—during the second quarter, making things even worse. Following the publication of the report, Netflix’s shares fell 26%, wiping off roughly $40 billion in market value.
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