Netflix details how it will detect password sharing between accounts

Update (02/01/2023) – HA

To the disappointment of many, the plan to block Netflix account sharing is already in motion and shows no signs of making exceptions or going back.

In a new streaming FAQ section, the company clarifies that people who live in another house will need to use their own account to have platform access. In this way, devices detected in other locations can be prevented from logging into an account.

For this, the platform will use information such as IP address, device IDs and account activity to determine if a device connected to your account is connected to your primary location.

Those who often travel or watch Netflix away from home need not worry. The procedure for a new device logged into the account at a location other than the primary location will be the requirement of a temporary code that allows login at that location for seven consecutive days.

The company said that those traveling with the main device will not have problems using the service in other locations, but will need to connect to the Wi-Fi from your primary location at least once every 31 days. However, this will not affect the number of people who can stream simultaneously with the same account.

In another measure to encourage more subscriptions and prevent password sharing, Netflix last year launched the “Profile Transfer” feature. With it, users can migrate history, suggestions and settings from one account to a new one.

The idea here is to compensate for the loss of more than 200,000 subscribers in the first quarter of 2022, as well as the drop in its global market share, from 32% to 27%, with a new, cheaper, ad-based plan and creation of more individual accounts that result in more revenue.

Original text (01/20/2023)

In December the The Wall Street Journal reported that Netflix would end password sharing, starting with tests in some regions of the world, but now the Streaming Giant has revealed that this block will roll out more widely as early as the first quarter of 2023.

The change was revealed in an open letter to Netflix shareholders published on January 19, 2023 regarding the company’s fourth quarter 2022 results.

Today’s widespread account sharing (over 100 million households) undermines our long-term ability to invest in and improve Netflix, as well as build our business. While our terms of use limit your use of Netflix to one family, we recognize that this is a change for members who share your account more broadly.

Breaking it down a bit further, Netflix estimates that 222 million households share their accounts with over 100 million households. The idea then is that these 100 million pay for this share to generate more revenue for Netflix, which would be reinvested in productions and improvements for streaming.

Netflix account sharing is currently active in the following countries:

• Costa Rica: additional US$ 2.99 (BRL 15.18)
• Peru: additional 7.9 PEN (BRL 10.78)
• Chile: additional 2,380 Pesos (BRL 15.11)

It is worth mentioning that the additional fee is not a one-time fee, and must be paid by each family in another household that wishes to use the same account. According to The Wall Street, the fee for sharing an account in the United States should be US$ 6.99 (~R$ 36) per additional user, there is still no information about this value for Brazil.

To prevent account sharing Netflix must use tools such as detection of IP addresses, device IDs and account activity monitoring. It is worth saying that the use of multiple screens in the same house will continue to be allowed.

Although this strategy is new, Netflix has always included terms in its contracts saying that account sharing would only be allowed for users who live at the same address, so it was somewhat expected that this restriction would be applied at some point.