Netflix, the popular video streaming service, has extended its crackdown on password sharing to four new countries: Canada, New Zealand, Portugal, and Spain. These users now have to pay to give people they don’t live with access to their account, after a similar trial was run in Latin America in 2022.
In its earnings report on January 20, 2023, Netflix said it expects to roll out paid sharing “more broadly” in the first quarter of 2023, which means that Australian subscribers might be affected by the new rules by the end of March. According to Netflix, they expect some people to cancel their accounts in response to this change, but it will ultimately lead to more revenue.
In countries where Netflix has activated its new rules for paid password or account sharing, subscribers to Netflix’s Standard or Premium plans will be able to pay for up to two people outside of their household to use their account. The cost ranges from country to country, but is less than that of starting a new, separate account. For example, in Canada, the cost is $C7.99, in New Zealand it’s $NZ7.99, and in Portugal and Spain it’s €3.99 and €5.99, respectively.
As part of these changes, users will be asked to set a “primary location,” which ensures that all members of a household watch from the same account. Netflix uses information including IP addresses and device IDs to determine whether someone is watching from their “primary location.” A new “manage access and devices” page will allow members to control who has access. In order to prevent devices from being blocked, users are required to connect a device to their home Wi-Fi and watch something at least once every 31 days.
In conclusion, Netflix’s crackdown on password sharing is expected to broaden in the coming months and affect users in four new countries. Although some users may cancel their accounts, Netflix expects this to ultimately lead to increased revenue. The cost of adding a new person is less than starting a new account and varies from country to country. Netflix uses information such as IP addresses and device IDs to determine if someone is watching from their “primary location.”
