Netflix has been going through a tough time, losing revenue, and subscribers, and laying off employees. One of the ways the company is looking to address the slump is by clamping down on password sharing. Now, Netflix is expanding its password sharing crackdown to four new countries.
It has traditionally been easy for subscribers to create multiple profiles and share their password with friends and family. This means multiple people across multiple households could use the same Netflix account.
Needless to say, the streaming giant sees this as one of the reasons why subscriber numbers are falling. If it prevents password sharing, some of those users getting Netflix for free will decide to pay to subscribe. Of course, some will just leave the service behind.
Seemingly siding with Netflix, a UK regulator has recently said that password sharing on streaming services is effectively illegal.
Over the last year or two, Netflix has been clamping down on password sharing by implementing new rules. Essentially, the platform now sets a primary location where your account can be used. Netflix conducts location checks to see if sharing is happening.
This new program has been in testing in Latin American countries such as Argentina and Brazil. Now the company is expanding the program to Canada, New Zealand, Portugal, and Spain. Netflix emphasizes its one account per household rule.
“A Netflix account is intended for one household and members can choose from a range of plans with different features (see chart below).”
Netflix still does not officially say how users can access streaming when out and about, such as on mobile or travelling. However, from my sources in Argentina it seems that there is a code involved, where users must verify themselves with the app before using it outside.
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