The online video streaming platform Netflix has cracked down on password sharing with new policy. This is a step to forge ahead for the revenue shortfall of the popular video streaming platform. The streaming giant Netflix (NFLX) has officially disclosed the first details of its password sharing crackdown.
The use of someone else’s Netflix account will no longer be permitted, and as of March, users will need to create their own logins and pay for their own subscriptions. Alternately, those who still wish to share an account with others residing in a separate household must subscribe to “paid sharing” at a cost of a few more pounds each month.
Netflix accounts will still be shared, but only inside a single household, according to the company’s help center, which modified its FAQ sites for Chile, Costa Rica, and Peru, three nations that are now experiencing a crackdown. (The United States may come next in the first quarter.)
Netflix’s anticipated global crackdown on password sharing, which is now in effect in only a few nations, including Chile, Costa Rica, and Peru, is getting more specifics. How Netflix would distinguish between those who are simply traveling or living in a second home and those who are account sharing has been a recurring topic throughout this entire process. The checking process seems to be…a little complicated.
According to Netflix, it will collect data from devices, including IP addresses, device IDs, and account activity, to identify non-household members. However, it omitted to go into detail about the precise timeline for the crackdown actions. To enhance its paid viewership, Netflix has revealed intentions to implement harsher sharing restrictions and increased fees for non-family customers by the end of March.
Cost of “paid account sharing
Prices for these additional fees have not yet been established by the firm. However, as a test, Chile, Costa Rica, and Peru have already adopted the charge system. In these nations, the charge is about equal to one-fourth of the cost of a Standard plan, on average. If Netflix continues to follow this policy, each additional member subaccount in the US would cost between $3.50 and $4, albeit a very broad range was explored. Subaccounts would cost as much as $4.43 if US fees were to follow Chile’s, for example.
If the experiments conducted last year in Costa Rica, Chile, Peru, Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic are any indication, Netflix members in, for instance, Australia may have to pay an additional $4 AUD a month under the new model.
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The organization chose certain nations because it seemed like password sharing was particularly prevalent there. Mobile devices including smartphones, tablets, and laptops were not subject to any limitations for subscribers, allowing authorized users to access their accounts while on the go. But the new arrangement could put a stop to sharing a single membership across several homes and entering into your account to watch a Netflix show at a friend’s or family member’s place.
Netflix, Inc. is an American production business and subscription-based over-the-top streaming service with headquarters in Los Gatos, California. It was established in 1997 by Reed Hastings and Marc Randolph in Scotts Valley, California, and provides a library of movies and TV shows through distribution agreements in addition to its own works, dubbed Netflix Originals.