Netflix, the biggest entertainment platform, is changing its policy of password sharing. The platform has decided to charge people sharing accounts. The entertainment platform is cracking down on password sharing in the U.S.
Earlier this year, Netflix launched its paid version in four countries, i.e., New Zealand, Spain, Portugal, and Canada.
According to Netflix, they are “pleased with the results” and plan a broad rollout” including the U.S., this upcoming quarter.
Netflix report stated that”paid sharing is another important initiative as widespread account sharing(100 M+ households) undermines our ability to invest in and improve Netflix for our paying members, as well as build our business”.
However, it is also noted that the streaming service expects a “cancel reaction” from its users when it announces the news. However, users tend to reactivate their accounts.
Previously, Netflix has said that it estimates that over 100 million households worldwide are using shared accounts and are cracking down on passwords. Though, sharing would be a good and significant opportunity for revenue growth.
Last year, Netflix said, “2022 was a tough year with a bumpy start, but a brighter finish”. We will have a clear path to re-accelerate our revenue growth. We were continuing to improve all aspects of Netflix.
As always, our north stars remain pleasing our members and building even greater Profitability over time.
How Will Netflix’s Password Sharing Crackdown Work?
In the current scenario, subscribers can use their account on one, two, or four screens at a time, and prices reflect the number of screens available.
The price range per account starts from $9.99 to $19.99/month. This will remain the same once the password-sharing crack known takes effect, except the one significant change.
After that, all streaming devices logged into an account must be in the same house. In the first half of last year, Netflix started testing out paying for password sharing in Costa Rica, Chile, and Peru. In these countries, Netflix now allows users using another person’s account to move their profile data, including viewing preferences.
Moreover, subscribers can now pay sub-accounts for additional family members or friends if they are willing to share with people outside their homes.
In its January letter, Netflix wrote that “from our experience in Latin America, we expect some cancel reaction in each market when we roll out paid sharing, which impacts near-term member growth.”
On the other hand, it was stated by Netflix that ” as borrower’s households begin to activate their standalone accounts and extra member accounts are added, we expect to see improved overall revenue, which is our goal with all plan and pricing changes.”
How To Stop Sharing Your Password?
Netflix will ask subscribers to enter a four-digit verification code on a streaming device not associated with the account owner’s household.
The account user will have to enter the four-digit code within 15 minutes to get access.
According to Netflix, it will use information such as IP address, device ids, and account activity from the devices signed into an account to determine the device authentication.
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