One of the most well-known OTT streaming services is Netflix. Netflix has officially acknowledged that they want to increase the threshold for password restrictions by 2023. In the Q4 shareholder letter, the company had just lately revealed the adjustments. In that specific argument, Netflix contends that widespread account sharing limits their capacity to make investments and enhance their offerings. The brand’s full statement is provided here;
“Today’s widespread account sharing (100M+ homes) jeopardises our capacity to develop our company and invest in Netflix in the long run. Even though our terms of service only permit one family to use Netflix at a time, we acknowledge that some members may find this to be a change. Therefore, we’ve put a lot of effort into developing new features that enhance the Netflix experience, such as the capability for subscribers to see which devices are using their accounts and transfer a profile to a new account. Members will have the choice to pay more to share Netflix with people they don’t live within various countries as we roll out paid sharing,” claims Netlfix.
Based on research in Latin America, Netflix claims it anticipates “some cancel reaction” in every location where paid sharing is introduced; nonetheless, an overall rise in revenue is anticipated as “borrower households” activate independent accounts and as new member accounts are added. Netflix claims that 222 million paying households and 100 million additional households with the potential to be lucrative share passwords.
Netflix will charge users who share their accounts with persons outside of their household. Add-on fees have already been implemented in some Latin American countries, with Netflix charging an extra $3 for each non-household user. In a Wall Street Journal piece from December, it was suggested that Netflix would charge its American subscribers little under $6.99 for account sharing.
Netflix plans to enforce its password-sharing restrictions using IP addresses, device IDs, and account activity. Although Netflix’s terms of service prohibit multi-household sharing, it has been allowed for so long that some subscribers may find it inconvenient to charge for account access to friends and family.
