In India, Netflix announced on Thursday that account and password sharing would be further restricted. Streaming service giant Netflix has been cracking down on password sharing for some time now, prohibiting users from sharing passwords with anyone other than their family members.
It is a Netflix account for a single household. All members of the household can use the service wherever they are – at home, on the go, on vacation – and can take advantage of features such as Transfer Profiles and Manage Access and Devices.
Emails will be sent out to users informing them that the account is intended for a single household, and that members outside the household can transfer their profiles to a new account and get a separate subscription.
The new measures by Netflix will stop users in India from sharing their Netflix accounts with friends, splitting the cost between two to three users.
In markets such as the US, Netflix has however announced paid sharing, which allows users to share their accounts with others for an additional fee.
Netflix identifies password sharing in what way?
In order to identify password sharing, Netflix uses the user’s IP address, device ID, and account activity from devices signed into the account. This identifies the IP address, so it is harder for users outside the primary household to use the account.
For access outside the primary household, Netflix users will need to enter access codes. Users will also have to connect to the primary household’s Wi-Fi at least once every 31 days.
Traveling with Netflix?
Despite the fact that the company has not explained how it plans on enforcing this, it is likely that the device ID will be used to verify the identity of users while on the go.
As Netflix recently cut the prices of subscriptions in countries like India, it announced in a letter to shareholders that it would not offer paid sharing in those markets. It costs Rs 649 per month for the company’s premium plan, which offers 4K content and allows up to four devices at once.
Business is boosted by the crackdown
The company has announced that its crackdown on password sharing has boosted its business. The company has revealed that it gained 5.9 million new subscribers in Q2 2023.
Sign-ups have already exceeded cancellations in each region, the company said in an earnings release.
Although we’re still in the early stages of monetization, we’re seeing healthy conversions of borrower households into Netflix members, as well as uptake of our extra member feature,” the company said with an optimistic tone. As they embark on this new phase of generating revenue, Netflix is pleased to observe the promising transformation of borrowers who have now become loyal and active subscribers. The success lies in their ability to inspire these households to see beyond borrowing and recognize the immense value that a Netflix membership brings. Through captivating content offerings and an intuitive user experience, Netflix entices individuals to embrace entertainment at its finest while seamlessly integrating it into their daily lives. Moreover, users are readily embracing the extra member feature, recognizing its potential for enhanced family leisure time or sharing experiences with friends near and far. This early traction signifies a genuine excitement among consumers towards expanding their entertainment horizons through engaging storytelling and boundless options available on the platform – all contributing to Netflix’s growing influence as a household name around the globe.