Beware of password-sharing: A crackdown on subscribers who provide friends and relatives access to their accounts has been announced by Netflix, The Wall Street Journal reported.
Passwords are reportedly being shared with more than “100 million more households” in addition to the 222 million paying households as a whole, according to Netflix, WSJ reported. According to reports, the latter figure represents more than 30 million families in the United States and Canada.
According to The Dallas Morning News, Netflix will take into consideration details like device IDs, IP addresses, and account activity to determine whether users are members of the same household. Those that wish to continue sharing an account could have to pay more.
Regarding the streaming service’s intention to start charging password-sharers countrywide, no information has been made public.
However, several countries have already started the campaign to charge viewers more for sharing their account. Those locations added $2.99 to monthly revenues for each additional user, while it is still unknown what that cost will be in the United States, Newsweek reported.
Netflix did the same for a considerable amount of time, but earlier the firm introduced a $6.99 alternative with advertisements, according to CNBC’s report. The project was carried out in collaboration with Microsoft.
The streaming service anticipates launching additional ad-supported subscription packages in the future.
Sarandos has also admitted that not everyone would agree with his choice to charge for password sharing.
Earlier, Ted Sarandos, co-CEO of Netflix, stated that the company will prioritise combating password sharing in 2019. According to reports, he indicated that while customers do not want price increases, Netflix would work to find a solution so that customers “see the value” in the business.
“There are folks who are enjoying Netflix, literally for free today,” Sarandos was quoted by CNBC in its report.
“So, they’re getting a lot of value out of it. I think they’ll be happy to have their own account,” he added.
“Consumers aren’t going to love it right out of the gate, but we need to show them why they should see value,” he told investors in early December, Deadline reported.
However, Netflix has not made any official statement regarding the matter so far, The Wall Street Journal reported.
For a business that previously tweeted, “Love is sharing a password,” this is a sharp turnabout. The initiative is a component of Netflix’s response to slowing growth, particularly in the American market.
Love is sharing a password.
— Netflix (@netflix) March 10, 2017
After years of opposition, Netflix has changed its stance on including advertisements in its content. In November, a $6.99/month ad-supported tier was introduced with the intention of luring in new customers searching for a deal on more costly ad-free subscriptions.