- Netflix has announced that it will start sharing passwords in India.
- The company does not allow users to pay to share their account with their friends and relatives.
- The company had previously announced paid sharing in countries such as the United States.
Netflix announced on Thursday that it is imposing additional restrictions on account and password sharing in India. The streaming service giant has been pushing password sharing globally for some time now, restricting users from sharing passwords with people other than their family.
“A Netflix account is for use by one household. Anyone living in that household can use Netflix wherever they are – at home, on the road, on vacation – and take advantage of new features such as Transfer Profile and Manage Access and Devices,” Netflix’s statement reads.
The company will send emails informing users that the account is intended for one household and that members outside the household can transfer their profile to a new account and take out a separate subscription.
It is quite common for users in India to share their Netflix account with their friends, splitting the cost of the account between two to three users. The company’s new measures now put an end to that.
It is noteworthy, however, that Netflix had announced paid sharing, which allows users to pay an additional amount to share their account with other users in markets such as the US.
How does Netflix identify password sharing?
Netflix identifies password sharing using the user’s IP address, device ID, and account activity from devices logged into the account. The company’s identification of the IP address makes it difficult for users outside the primary household to use the account.
Netflix requires users to enter passcodes to access outside of the primary household for up to seven days. In addition, users must connect to the primary household’s Wi-Fi at least once every 31 days.
Netflix while traveling?
Netflix has said this move will not affect users who use the app while traveling. While it’s not clear how the company plans to enforce this, it will likely use the device ID to verify the user’s identity.
Netflix had said in a letter to its shareholders that it will not offer paid sharing in countries such as India as it has recently slashed subscription prices in these markets. The company’s premium plan that offers 4K content and allows up to 4 devices at a time costs Rs 649 per month and is the most expensive streaming service in the country.
Crackdown boosts business
Netflix has announced that its crackdown on password sharing around the world has boosted its business. The company revealed that it gained 5.9 million new subscribers in the second quarter of 2023. Interestingly enough, in the first quarter of 2022, the company had lost subscribers for the first time in a decade.
“Sales in every region are now higher than pre-launch, with signups already outpacing cancellations,” the company said in a press release.
“Cancellation response has been low and while we are still in the early stages of monetization, we are seeing a healthy conversion of borrower households to full-paying Netflix memberships, as well as the adoption of our additional member feature,” the company added.
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