Netflix has finally begun implementing its long-awaited paid-password-sharing plan to combat annual losses of $6 billion (as explained in 2021) caused by widespread password sharing. With over 100 million viewers using shared accounts, Netflix aims to address this issue by charging an additional fee for users streaming outside their households. This initiative aims to make sure that people who share passwords contribute to the revenue and help recover the losses faced by the streaming platform. In this article, we will address all your questions about Netflix’s crackdown on password sharing.
Netflix’s Strategies to crackdown on Password Sharing
In order to encourage subscribers to use their own profiles instead of sharing their passwords, Netflix has planned multiple strategies:
- Netflix introduced the “paid sharing” scheme, which allows users who are using the same Netflix account from different households to be able to use it while adding an extra cost to the account holders. (Not stopping the password sharing but instead generating revenue from it).
- A feature dubbed “Profile transfer” lets any user transfer their profile to a new account without any hassle while still being able to relocate the favorites, viewing history, recommendations, and other saved data.
- Netflix’s introduction of the “Basic with Ads” subscription tier at £4.99 has gained nine million worldwide subscribers. This option includes four to five minutes of ads per hour, lasting 15 to 30 seconds each. It is the cheapest subscription on Netflix, allowing freeloaders to have their own accounts.
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All about the paid password sharing
- Extra member slot on Netflix necessitates payment of additional fee by the account owner. Once purchased, a new member can join the account using one of the available slots.
- It’s worth noting that the new member must utilize the account within the same country where it was originally created.
- The cheapest subscription tier, which includes ads, does not allow adding extra members.
Actions Netflix might take to the account with unpaid extended membership
Netflix password sharing is, without a doubt, a copyright violation and is illegal after the subscriber checks right on the terms of services while initially creating the account. That said, the company has publicly encouraged password sharing in the past making its recent crackdown a contradiction. While Netflix has the option to take legal action, they may initially try other approaches to encourage compliance.
Love is sharing a password.
— Netflix (@netflix) March 10, 2017
One possible approach Netflix can take is to repeatedly send notifications and emails to the shared account in an attempt to encourage them to pay for additional access. If this method proves ineffective, Netflix may resort to blocking devices after issuing warnings.
Netflix Paid Sharing Plan Pricing
The paid sharing plan implemented by Netflix will not affect accounts used within the same household. The paid password-sharing plan was first tested in Chile, Costa Rica, and Peru, with $3 added for each out-of-household password. In South America, it was typically an additional £2 to £3 per profile per month in addition to the regular account bill. The exact pricing details for the extended membership globally are not certain, although it’s $7.99 in the US.
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