Netflix to Expand Crackdown on Password Sharing in Q1 2023

Netflix to Expand Crackdown on Password Sharing in Q1 2023

Netflix said today that it plans to roll out paid sharing “more widely” in the first quarter of 2023, expanding its crackdown on Netflix accounts shared between households.

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In a letter from a Q4 shareholder explaining the changes [PDF]Netflix says widespread account sharing undermines its ability to invest in and improve the service.

Today’s broad account sharing (100M+ households) undermines our long-term ability to invest in and improve Netflix, as well as build our business. While our terms of use limit Netflix use to your family, we recognize that this is a change for members who share their accounts more widely.

So we’ve worked hard to build additional new features that improve the Netflix experience, including the ability for members to review the devices using their account and transfer a profile to a new account. As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with.

Based on testing in Latin America, Netflix says it expects “some backlash” in all markets where paid sharing is introduced, but an overall improvement in revenue is expected as “borrowing families” activate independent accounts and as additional member accounts are added. . According to Netflix, an estimated 222 million paying households share passwords with an additional 100 million potentially monetized households.

Netflix will require people who share accounts with others outside their family to pay to do so. Top-up payments have already been rolled out in some Latin American countries, with Netflix charging about $3 more for an additional non-family user. Report from The Wall Street Journal in December suggested that Netflix could charge slightly less than $6.99 for account sharing in the United States.

Netflix plans to enforce password sharing rules by IP addresses, device IDs, and account activity.

Netflix’s terms of service have never allowed for multi-family sharing, but Netflix has allowed the practice for so long that implementation fees for offering account access to friends and family can add up to some subscribers.

Pricing on Netflix plans includes supported multi-device viewing as well as affecting streaming quality, but Netflix doesn’t want multiple viewers using the same account unless they live together. Netflix’s premium plan, for example, allows Ultra HD 4K streaming and support for viewing on four supported devices such as iPhones, iPads, and Macs at one time, but in the future, access will be limited to people in the same house.

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