The End of Netflix Password Sharing: What Do You Need to Know?
Key Points
- Netflix is a global streaming giant with over 223 million subscribers worldwide.
- To protect its revenue stream and combat password-sharing, the company recently announced it was “updating” its policies which are expected to be in place before April.
- If users want to add someone outside their household, Netflix will require a monthly fee for each extra account created in the same country as the primary one.
- Netflix hopes these new rules will protect user accounts from hijacking and uphold the company’s user agreements and policies.
Online streaming has become an integral part of our entertainment experience, and Netflix has emerged as the leader in this space. With about 223 million subscribers worldwide, Netflix has revolutionized how we watch our favorite TV shows and movies. Whether it’s binge-watching a new series or catching up on old classics, Netflix has something for everyone.
From its humble beginnings as a DVD rental-by-mail service, Netflix has evolved into a global streaming giant. However, with this growth came a new challenge: How to ensure that everyone who watches Netflix pays for the service and is not sharing passwords with friends or family. To combat this, Netflix recently announced it was “updating” its password-sharing policies, which they expect to be fully in place before April.
The new policy has caused controversy, with many users expressing their displeasure online. Netflix has stated that this change is about introducing measures to ensure users access the service with the appropriate account. This includes introducing additional authentication to support the traditional username and password system.
Netflix has stated that it recognizes the importance of being able to share access with those close to you and has sought to develop a system that balances convenience with security.
Why Does Netflix Have a Problem With Password Sharing?
Password sharing has become an issue for online streaming platforms, including Netflix. Password sharing allows users to access someone else’s account without paying for it, leading to a loss of revenue for the company. Companies are looking for ways to combat password sharing and protect their revenue streams in a world where everything is shifting towards subscription-based models.
For example, if one subscriber shares their login credentials with five friends, Netflix is missing out on five potential subscribers who could have paid for their own account. Multiplying by millions of users, this kind of practice can substantially impact Netflix’s revenue. From Netflix’s standpoint, they invest billions of dollars in creating and acquiring content to keep its subscribers entertained. It relies on the revenue generated from its subscribers to fund these efforts.
Netflix’s Updated Policies on Password Sharing
Netflix has updated its policies to crack down on password sharing. The new policies state that a limited number of people can only use a single Netflix account, and the company will enforce this by monitoring user activity.
Netflix accounts will stay virtually unchanged, but the streaming platform is taking a firm stance on its new rules. To ensure compliance, Netflix will use the main user’s location as the standard for all profiles using the account. This means that all profiles will be deemed to belong to individuals in the same household.
Unfortunately, this change puts restrictions on password sharing. Moving forward, Netflix will no longer allow its users to share their Netflix account information with people who do not live in the household. Any attempts to access Netflix from a different location will likely be blocked. Users must verify each device to continue accessing Netflix on all devices.
Determining Your Location
Defining a primary location for a Netflix account can be challenging, especially for users who share an account and live in different geographical locations. However, the main Netflix user will be responsible for setting the primary location to enforce the changes. Netflix will use this information and the network connection to log into the account to manage each profile created per household.
To set the primary location, users must log into Netflix from a device that uses their home’s network connection. Users can use the app to set the primary location and update it when needed. Netflix users must know that once a primary location is set, it may prevent some users from using the account. Devices that use your home’s network will be verified and able to access Netflix.
How Does Netflix Detect Devices Within Its Household?
Netflix leverages its users’ primary locations to combat password sharing. Using factors such as IP address, device IDs, and account activity, Netflix can determine if a device is being used outside the household. If a device is found in the same household as the main account holder, it becomes a trusted device.
However, if the device is found to be outside of the household, it may violate Netflix’s password-sharing policies and could be blocked. To maintain their “trusted device” status, anyone with a Netflix profile must log in at the main account holder’s location and watch TV shows or movies at least once every 31 days.
This helps to keep all profiles active and devices in compliance with the company’s password-sharing rules. To enforce these policies, Netflix combines these requirements with other measures.
Sharing Your Netflix Account Beyond Household Borders
By default, sharing a Netflix account is automatically limited to individuals within the same home. However, if you want to add someone outside of your household, Netflix will start offering a paid option.
Adding additional account users to a household will require a monthly fee for each additional account, which varies by country. The additional accounts must also be created in the same country as the main profile. This paid option is the only way to share a Netflix account with individuals outside your household and still comply with the company’s new password-sharing rules.
While Netflix is primarily meant to be used in the country where you established your account, it can be accessed in over 190 countries worldwide. However, if you are going on vacation or if you will be traveling for an extended period of time, your access may be restricted.
In this case, you can ask for a temporary access code from Netflix, allowing you to stream for 7 days in a row. If you move to another country, your primary location can be updated.
Wrapping Up
Netflix’s journey from true love to tough reality has been a complete 180. After running on the slogan “Love was sharing a password” in 2017, they firmly stand behind their stance against password-sharing. Netflix hopes its new rules and updated password-sharing policies will protect users from account hijacking and ensure that the company’s user agreements and policies are upheld. Netflix does expect some account holders to cancel their subscriptions, but they firmly believe this change is necessary for the company and its users.
Thanks to our Canadian friends at Winnipeg IT services company Clear Concepts for sharing what is happening north of the border.
