How Netflix will make users pay for shared accounts

Having confirmed plans to start charging for global password sharing, Netflix already defined the tool for prevent its millions of users from “cheating” the new conditions.

According to a recent report published by The Wall Street Journalthe big “N” platform seeks to generate more revenue for the future thanks to severe reduction of your user basewhich amounted to 200,000, and many more as part of the conflict between Ukraine and Russia.

To ensure compliance with the new terms of service, Netflix it will check through the IP of the device connection who you log in with: this way you will know if multiple users share the same password.

When you connect to the Internet from one device, Netflix identifies the IP number and the network you are connected to.

Likewise, to verify it, the platform will send a link to the email address or the phone number associated with the primary account owner.

It must be remembered that this measure was applied only momentarily in Latin America, in particular, in Argentina, Chile, Costa Rica, Peru, El Salvador, Guatemala, Honduras and the Dominican Republic. So they had to go back with the changes, due to user complaints.

“Add a Home” returns to Netflix in 2023: the details

Without the company making official the persistent rumors of an end to password sharing, Netflix has begun exploring ways to crack down on it, but The changes will officially go into effect next year..

The popular TV and movie platform has long known that password sharing is a problem affecting its bottom line, but surging subscriptions in 2020 have allowed the company to avoid addressing it.

With revenue plummeting this year and Netflix’s first loss of subscribers in 10 years, Netflix CEO, Reed Hastingshe decided it was time to act on the problem, which had been delayed for too long.

That’s why starting in 2023, Netflix plans to ask people who share accounts with others outside their household to pay to do so.

Previously, Netflix tested this method of sharing passwords in early March in some Latin American countries – Argentina, Chile, Peru and Costa Rica – charging about an additional $3 dollars.

In these countries, the primary account owner would have to provide a verification code to anyone outside the household who wants to access the account, and Netflix repeatedly asks for the code until a monthly fee is paid to add non-household subscribers.

A similar tactic could be used in the US, with Netflix possibly charging just less than the cost of its $6.99 ad-supported plan for non-home subscribers who share someone’s plan.

Netflix wants those who have a shared password to sign up for their subscription. Netflix will enforce password sharing rules on IP addresses, device IDs, and account activity. The goal is to phase out password sharing instead of doing it all at once.

One method the company reportedly considered was adding pay-per-view content that might make users not want to share their passwords with people who might rent content, but ultimately decided against do not use them.

The terms of service have never allowed for an account to be shared between multiple households, but Netflix has rejected the opportunity to implement additional fees for fear of inconveniencing some of its subscribers.

An estimated 222 million paying households share passwords with another 100 million households that Netflix wants to monetize.

SL