Streaming Squeeze
Netflix cracks down on password sharing
Netflix has started to crack down on password-sharing, enforcing its new policy that only individuals who live under the same roof can share accounts.
The streaming company announced Tuesday through emails to accounts who password-share that Netflix is now adhering to the one account per one household expectation. Users will still be able to access their account through a phone, tablet or new TV when traveling.
To identify which users are deemed in or out of the account’s household, Netflix will reportedly use a combination of IP addresses, account activity and device IDs to decide if a device is within the same household. This will come with stricter log-in requirements, such as verifying streaming-devices every 31 days.
Netflix is giving accounts that are guilty of password-sharing across households two options: remove users outside your household from your account or pay an $8 a month fee for every user not in your household.
At the end of last year, Netflix introduced a new subscriber plan that included the Basic with ads Plan for $6.99 a month.
The Basic Plan, which allows users to watch with only one device at a time, is $9.99 a month.
The Standard Plan gives users the ability to download movies or shows on up to two devices for $15.49 a month.
The Premium Plan is $19.99 a month and enables users to watch Netflix on four screens at the same time and download content on four different devices.
To share across households, account holders will pay $8 a month for each additional user outside the household on all these plans.
The prices in 2022 were higher than in 2021. So, it probably wasn’t coincidence that Netflix lost roughly 200,000 subscribers last year. The reduction in revenue, combined with splurging on its production company, has driven prices from $12.99 to $15.49 for a standard plan and $15.99 to $19.99 for a premium plan.
In April, Netflix shares took a dive. Netflix also estimated that 100 million Netflix accounts around the world share a password beyond their household. The company hopes the new Basic with Ads Plan and limitations on password-sharing will help make up for lost revenue from the decrease in subscribers and the money spent on production.
Although these new parameters are just now reaching the United States, Netflix introduced limits on password sharing in multiple other countries at the beginning of 2023. The company plans to expand the limitations, stating initial cancellations are offset by new accounts.
Netflix reported that the growth in international subscribers was also affected by the new limitations, but the company still acquired 1.75 million new subscribers during the first quarter of 2023.
For more about Netflix and other changes in streaming, check out the new issue of LuckBox: The YouTube Issue available for free online on June 1.
