Netflix is planning to implement newer measures to bring an end to password sharing. Read to know more about the plan.
What’s Netflix’s new plan for stopping password sharing?
After reporting a loss of subscribers last year, Netflix is trying to bounce back by introducing cheaper plans with ads for suppressing password sharing. The trial plan is active in south American nations such as El Salvador, Honduras, Argentina, and Guatemala. However, it will be employed in the broader sense this year. According to reports, sharing passwords from one location or household will soon be charged. “While our terms of use limit the use of Netflix to a household, we recognize this is a change for members who share their account more broadly. 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,” stated Netflix.
“Hence, as we work through this transition – and as some borrowers stop watching either because they don’t convert to extra members or full paying accounts. Near-term engagement, as measured by third parties, like Nielsen’s The Gauge, could be negatively impacted. However, we believe the pattern will be similar to what we’ve seen in Latin America. Engagement growing over time as we continue to deliver a great slate of programming. And borrowers sign-up for their accounts,” added Netflix.
More on the new measures
Previously, Netflix did not have a limit on the number of locations and devices it could be used from. However, the platform began experiencing problems when legacy film studios such as Warner Bros and Disney began streaming. In April 2022, Netflix lost about 200,000 subscribers instead of gaining 2.5 million more according to their predictions. The loss of subscribers was the biggest in the platform’s history.
“Over the last 15 years, we’ve worked hard to build a streaming service. It’s easy to use, including for people who travel or live together. It’s great that our members love Netflix movies and TV shows so much they want to share them more broadly. But today’s widespread account sharing between households undermines our long-term ability to invest in and improve our service. So we’ve been carefully exploring different ways for people who want to share their account to pay a bit more. In March 2022, we launched an ‘add extra member’ feature in Chile, Costa Rica, and Peru,” explained Chengyi Long. Long is Netflix’s Director of Product Innovation.