Netflix to Prevent Account Sharing Outside Primary Households

LOS GATOS, CA — Netflix recently released details on how it aims to maintain password sharing within a household while preventing outside usage. The company aims to curtail account sharing in 2023 by charging people an additional fee and, overall, much more money annually to use the streaming service outside the household for extended periods.

The streaming giant detailed how it plans to control the experience within the household. Its FAQ page is updated on Netflix’s website for countries where it is already testing these new policies. Chile, Costa Rica, and Peru were the first countries Netflix “tested.”

Users now must define a “primary location” through their TV, and all devices and apps should be connected to the same wifi as the TV. If the user does not have a TV or fails to set the primary location, Netflix will select one for the user.

According to Netflix’s website, users must open up Netflix at least once every 31 days on their devices to ensure that said devices are registered with the primary location. For those who travel for work or watch Netflix outside the house, temporary codes can be sent or approved by the primary account holder to keep Netflix active on that device. It is unclear at this time if the number of temporary codes that can be sent is limited.

Although not active in the United States, new co-CEO Greg Peters is attempting a huge product overhaul. Extra member fees will likely come to more countries soon.

These new policies are Netflix’s desperate attempt to get more users on their platform. While this might be a temporary fix, the new policies could cause many users to cancel their accounts. Netflix boasted over three million new subscribers in Q4 of 2022, so some of their efforts, such as the ad-supported option for $6.99 a month, are paying off. Still, as the uptick in subscription prices sees no signs of slowing, Netflix might back itself into a corner. 

Unlike the streaming service’s early days, they actually have competition now. Only time will tell if this policy change will backfire or become the new industry standard.