Netflix tightens password-sharing policies to increase subscriptions and revenue. Password sharing is allowed with only people who live within the same house.
Netflix – Previous Password-Sharing Policies
In the past, Netflix has been known to promote its subscription sales by using the “Sharing Factor” with your loved ones as a major USP. However, it seems that this plan backfired as many unrelated people started purchasing combined subscriptions and sharing them with others. The number of devices that could be used with each account was fixed with the type of subscription purchased. All one had to be careful about while using a shared subscription was the timing.
Netflix – New Password-Sharing Policies
After months of testing its new password policies in Latin America, Netflix has finally decided to implement new password-sharing rules for its subscribers across the world. According to this new change, people living in the same house can share the password among themselves. Netflix will also confirm if the people sharing the password belong to the same household. The previous sharing password policy is said to have been utilized by over 100 million households, which had a significant negative impact on Netflix’s financial performance.
How Does Netflix Plan To Implement These New Policies?
As per Netflix, a “Household” is a place with an IP address where the Primary Account Holder (one who pays for the subscription) lives with the other people who share the password. In most cases, it will be the Subscriber’s home address which will be recorded in Netflix’s database along with the IP address, device IDs, and account activity. All the devices registered using the same IP address will not face any issues when they are logging in from their “Home”.
If a user tries to sign in from a device that is not using the same IP address as the Household, then they will have to verify the device using a four-digit code sent to the Primary Account Owner within 15 minutes. This verification will remain valid for seven days, after which, the device outside the household’s IP address will have to be re-verified.
Another important thing to note here is that if the Primary Account Owner is traveling, then they will also have to connect to the home Wi-Fi once in 31 days to avoid account verification.
Users who travel with their primary device won’t have any trouble logging in while they’re in another place. Users might, however, occasionally be asked for device verification if they spend a lot of time away from their primary residence.
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What Measures Will Netflix Take Against Policy Offenders?
Netflix has not revealed what steps it will take against people trying to use their friend’s accounts. One thing for sure is that it will not levy an additional charge on the account owner for sharing the account with a person outside the household for the time being. There is no guarantee that this policy changes in the near future. However, users may soon be prompted to pay for the additional users or buy a new subscription, which would allow them to transfer their profile.
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Your Thoughts On How Netflix Plans To Make It Difficult For Users To Share Passwords?
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