Netflix password sharing: Streaming service to expand crackdown – Times of India

US-based popular content streaming platform Netflix has recently shared its Q4 shareholder letter (spotted by MacRumors) to explain some of the changes that will arrive for its services. The company is planning to roll out paid sharing “more broadly” by the first quarter of 2023. This feature will help Netflix to expand a crackdown on Netflix accounts that are shared between multiple households. The company also explained how “widespread account sharing” can undermine its ability to invest in and improve its services.
How Netflix has added new features to curb widespread account sharing
The company mentions adding new features to its services to “improve the Netflix experience.” These features include the ability for account holders to review the devices that are using their account and to transfer a profile to a new account. Netflix is also planning to roll out paid sharing subscriptions that will allow users in several countries to pay extra to share Netflix with people they don’t live with.
How this new policy will affect Netflix
Netflix has predicted to see “some cancel reaction” in each market where paid sharing subscriptions are introduced. The company made this prediction based on a test conducted in Latin America. However, Netflix claims that this change will have an overall positive effect on the company’s revenue which is expected to improve. Netflix even mentioned that this will happen when “borrower households” will activate standalone accounts while extra member accounts will also be added.

According to the company, nearly 222 million paying households share passwords with an additional 100 million households which could be monetised. For that, Netflix will have to ask people who already share their accounts with others outside their household to pay.
Netflix add-on payments
Netflix charges around $3 extra for an additional non-household user. The add-on payments for the service have already been rolled out in some Latin American countries. A recent report from The Wall Street Journal suggested that Netflix could charge just under $6.99 for account sharing in the US.

How Netflix is planning to enforce the password-sharing rules
The company is planning to enforce password-sharing rules via IP addresses, device IDs and tracking account activity. Netflix’s terms of service have never allowed for multi-household sharing. However, the company allowed the practice for so long that implementing the new add-on fees for offering account access to friends and family may upset some subscribers.
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