The company announced in its earnings report on Thursday that it was planning to roll out its ‘paid sharing’ scheme ‘more broadly’ on its platform toward the end of the first quarter of 2023. In other words, Netflix will begin charging you for adding sub-accounts for those who do not live with you but are using your paid subscription. Besides its paid sharing option, the company is also keen on rolling out its lower-cost ad-supported subscription model. “Today’s widespread account sharing (100M+ households) undermines our long-term ability to invest in and improve Netflix, as well as build our business. While our terms of use limit use of Netflix to a household, we recognize this is a change for members who share their account more broadly,” reads Netflix’s report. “As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with,” it added. Under the new ‘paid sharing’, a single Netflix account can be only used by those living in the same household. It will have a new validation system that will detect when users log in from outside of the primary account holder’s home. In order to verify a device, Netflix will send a link to the phone number or email address related to the primary account holder. On opening the link, it will show a page asking for a 4-digit verification code that must be entered on the device within 15 minutes. If the code is not entered within 15 minutes, it will expire and a new code will have to be requested. Verification will not be required in cases where the device is connected to the primary user’s internet connection. Additionally, the streaming giant will allow primary account holders to add up to two additional users who would not require a validation code to log in. Further, users of the primary account or the additional households will still be able to watch while traveling, whether on a TV or mobile device. Concerning password sharing, Netflix says it expects some “cancel reaction” in each market, as it has already been testing in Latin American countries such as Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic where the user can buy additional “homes” for anyone living outside the subscriber’s primary household. However, the company expects subscriptions to pick up and see improved overall revenue in the long term when “borrower households” will begin paying for their own separate accounts as well as an extra member account. Additional new features to accompany the ‘paid sharing’ scheme that would improve the Netflix experience include the ability for members to review which devices are using their account and to transfer a profile to a new account. Netflix doesn’t provide any information on the pricing or a specific date when it plans to roll out the ‘paid sharing’ scheme. Whether the streaming giant’s password-sharing crackdown works or not, only time will tell. Keep watching this space for more updates!
