Password Crackdown Limit To Be Soon Expanded By Netflix


Netflix is one of the most popular OTT streaming platforms out there. Netflix has now confirmed that they are planning to expand the limit of password crackdown by the year 2023. The brand had recently mentioned the changes in the Q4 shareholder letter.

In that particular statement, Netflix claims that widespread account sharing undermines their ability to invest and improve their services. Here is the detailed statement shared by the brand;

“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.

Netflix says it expects “some cancel reaction” in each region where paid sharing is launched based on studies in Latin America, but an overall increase in revenue is predicted as “borrower households” activate independent accounts and as more member accounts are added.

Password Crackdown Limit to be Soon Expanded by Netflix

According to Netflix, 100 million new households that have the potential to be profitable share passwords with an estimated 222 million paying households. Persons who share accounts with people outside of their household will need to pay Netflix.

Some Latin American nations have already implemented add-on charges, with Netflix charging an additional $3 for each non-household user. According to a December Wall Street Journal article, Netflix might charge American customers slightly under $6.99 for account sharing.

Netflix intends to use IP addresses, device IDs, and account activity to enforce its password-sharing policies.

Although multi-household sharing has never been permitted by Netflix’s terms of service, it has been permitted for so long that charging for account access to friends and family could annoy some subscribers.

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