As we’ve previously reported, Netflix is cracking down on password sharers, but now the streaming giant has revealed how much money it costs them when users share passwords.
This comes after the company announced they are planning on bringing out a new feature, which they have already begun testing in certain countries, that prevents users from sharing their accounts with other households.
And they have revealed exactly how they plan to stop you from doing so.
However, they won’t leave you high and dry, as the streaming site has come up with a cost-effective alternative – the paid sharing plan. This will be rolled out as a way to soften the blow on its “100+ million” users who were previously benefiting from sharing accounts.
It will be a middle ground for users, more expensive than a single subscription, but cheaper than separate accounts.
Confirming the news, Netflix said: “Later in Q1, we expect to start rolling out paid sharing more broadly. Today’s widespread account sharing (100M+ households) undermines our long term ability to invest in and improve Netflix, as well as build our business.”
Netflix understands that this change might not be welcomed by everyone, and as such is taking steps to make the transition easier. Features like easy profile transfer, and being able to keep track of devices being used on an account are just some of the ways they are attempting to improve the experience.
“While our terms of use limit use of Netflix to a household, we recognise this is a change for members who share their account more broadly,” the streaming service said.
“So we’ve worked hard to build additional new features that improve the Netflix experience, including the ability for members to review which devices are using their account and to transfer a profile to a new account.
“As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with. As is the case today, all members will be able to watch while traveling, whether on a TV or mobile device.”
But they added that with more money coming in, the quality of the shows provided will also improve.
They continued: “We believe the pattern will be similar to what we’ve seen in Latin America, with engagement growing over time as we continue to deliver a great slate of programming and borrowers sign-up for their own accounts.”
The streaming giant then confirmed exactly how they plan on making sure you aren’t sharing passwords outside of your household, and it all has to do with their new terms.
“A primary location is set by a TV that is signed into your account and is connected to your Wi-Fi network. All other devices signed into your account on that Wi-Fi network will be associated with your primary location and will be able to use Netflix,” Netflix says, per Tech Crunch.
They further added: “To ensure that your devices are associated with your primary location, connect to the Wi-Fi at your primary location, open the Netflix app or website, and watch something at least once every thirty-one days.”
For those who are concerned about what this means for on-the-go streaming, Netflix think they have a way around this. If you’ve not recently watched something on your home Wi-Fi, simply request a verification code from the main account holder, and this will let you stream for 7 days.
However, it is still unclear if you can do this repeatedly, and hence keep streaming during longer periods of travel.
According to UNILAD, if everyone of the over 100 million account-sharing users created their own accounts on Netflix’s $9.99 basic tier, the streaming firm would generate about $1 billion more in revenue.
Knowing that, it’s understandable why they’d want to try and push the new system.
