A time assumed by Netflix as a way to reach more subscribers faster, the sharing of Netflix accounts is now seen by the Los Gatos firm as a long-term threat to the streaming platform. The practice, very widespread among Internet users, prevents Netflix from charging as many users as the firm should to continue its (heavy) investments in original creations, among others.
A study reveals that each Netflix account sharing implies on average that 2.3 additional people access the platform without paying. A huge shortfall – which the firm would like to fill. But there is a problem: Internet users easily raise the shield as soon as it is a question of changing anything around this sharing of accounts. The fault, no doubt, with the relative benevolence of Netflix in the past.
Netflix will roll out its measures in more markets by the end of Q1 2023
The study reveals, among other things, that 79% of account sharing recipients have no intention of subscribing if Netflix prevents them from continuing to use the service with someone else’s account. So, rather than completely ban the practice, Netflix has chosen to introduce limits, and a paid offer allowing you to continue to share your accounts as before – without affecting the economic model of the streaming site.
So far the war on password sharing has only been declared in a handful of markets, mainly in South America. But the firm’s latest letter to investors heralds the start of a more aggressive second phase. Netflix explains: “we expect to roll out the paid account sharing option sometime in the first quarter of 2023 […] although our terms restrict the use of Netflix in the home, we recognize that this involves changes for members who shared their account more widely”.
The firm continues: “That’s why we’ve been working hard to build additional new features that enhance the Netflix experience, including the ability for members to review the devices using their account, and transfer a profile to another account . As paid account sharing rolls out, members in many countries will also have the option to pay extra if they want to share Netflix with people who don’t live with them.”
De facto, it will still be possible to share an account with a third party “without saying anything to Netflix” after the implementation of the new measures. But the use of your account outside the home will be detected, and the firm will only allow your Netflix account to be used like this for two weeks, under conditions.
In the Netflix Honduras help pages where measures against account sharing are already active, we can read: “you can watch Netflix on a television outside your household for up to two weeks, as long as your account has not been used previously in that place. This use is authorized once per place and per year”.
Netflix has some 222 million paying subscribers, but more than 100 million people are said to use the service for free by collecting login codes from other users.
