Netflix has stated that it will impose new limitations on account and password sharing in India. For some time now, the streaming service giant has been cracking down on password sharing globally, prohibiting users from exchanging passwords with anybody other than their family.
“A Netflix account is only valid for one household.” “Everyone in that household can use Netflix wherever they are — at home, on the go, on vacation — and benefit from new features like Transfer Profile and Manage Access and Devices,” according to a Netflix release.
The company will begin sending emails to consumers alerting them that the account is intended for a single family and that members outside the household can transfer their accounts to a new account and receive a separate subscription.
In India, it is extremely usual for consumers to share their Netflix membership with their friends, sharing the account cost amongst two to three individuals. The company’s new procedures will put an end to this.
It is worth noting, however, that Netflix has launched paid sharing, which allows customers to pay an additional fee to share their account with other users in regions such as the United States.
How can Netflix detect password sharing?
Netflix detects password sharing by analysing the user’s IP address, device ID, and account activity from devices that are signed in to the account. The identification of the IP address by the company makes it harder for users outside of the primary home to use the account.
Users will need to enter access codes to gain access outside of their primary residence for up to seven days. Furthermore, users must connect to the primary household’s Wi-Fi at least once every 31 days.
Netflix while on the go?
According to Netflix, this change won’t have an effect on customers who access the service while abroad. Although it’s unclear how the business intends to enforce this, it’ll probably utilise the device ID to confirm the user’s identification.
In a letter to its shareholders, Netflix stated that because it had just reduced the cost of subscriptions in certain markets, it would not offer paid sharing in nations like India. The company’s premium plan, which costs Rs 649 a month and allows for simultaneous use of up to 4 devices and 4K content, is the priciest streaming service in the nation.
Crackdown increases business
According to a statement made by Netflix, its business has increased as a result of the global crackdown on password sharing. The business has disclosed that in Q2 2023, it added 5.9 million new users. It’s interesting to note that in Q1 2022, the company saw its first subscriber loss in ten years.
According to the company’s earnings report, “revenue in each region is now higher than pre-launch, with sign-ups already exceeding cancellations.”
According to the company’s earnings report, “revenue in each region is now higher than pre-launch, with sign-ups already exceeding cancellations.”
“The cancel reaction was low, and while we’re still in the early stages of monetization, we’re seeing healthy conversion of borrower households into full-paying Netflix memberships as well as the uptake of our extra member feature,” the business continued.