Netflix has been a leader in the streaming industry for over a decade and has continued to grow its subscriber base. However, with the rise of competitors such as Disney and Apple entering the market, the company has been facing pressure to maintain its subscriber numbers. One major factor affecting their numbers is password sharing, which Netflix has vowed to put an end to within 10 weeks.
To accomplish this, Netflix has started trials in Latin American countries like Peru, Costa Rica, and Chile to test out their new anti-password-sharing system. The company has updated its help pages in these countries to give users more information on what to expect and how they plan to enforce their rules.
One of the main techniques Netflix will use is device verification. When a device tries to log into an account outside of the associated household, the primary account holder will receive a four-digit code to authenticate the login attempt. This will help prevent password sharing and ensure that those who don’t live with the primary account holder use their own account to watch Netflix.
To monitor password sharing, Netflix will use information such as IP addresses, device IDs, and account activity. The company has instructed users in the trial countries to set up a primary location, which is the main place where they watch Netflix and is associated with their home Wi-Fi network. To ensure their devices are associated with their primary location, users have been told to connect to the Wi-Fi at their primary location, open the Netflix app or website, and watch something at least once every 31 days.
For those who still want to share access to Netflix with others, they now have the option to add extra members to their account instead of sharing their login credentials. Account owners can purchase an extra member slot for a lower price than a basic Netflix plan, which they can use to invite people outside of their household to use the platform. Extra members will have their own accounts and passwords, but their membership will be paid for by the person who invited them.
Password sharing has been damaging to Netflix’s ability to invest in and improve their platform. In a letter to shareholders last month, the company acknowledged that password sharing undermines their long-term ability to invest in their company. With the new anti-password-sharing system in place, Netflix can protect their subscriber numbers and ensure they continue to invest in their platform.
In conclusion, Netflix is taking significant steps to clamp down on password sharing and protect their subscriber numbers. The company’s trials in Latin America have shed light on how they plan to enforce their rules, and users can expect device verification, monitoring of IP addresses, device IDs, and account activity, and the option to add extra members to their account instead of sharing login credentials. With the streaming wars heating up, Netflix’s new anti-password-sharing system will help them continue to grow and maintain their position as a leader in the industry.
