Netflix reveals first details of anti-password sharing plan

Streaming giant Netflix indicated that it is stepping up the crackdown on password sharing with an updated FAQs page on the official website. After Netflix co-founder Reed Hastings stepped down as CEO last month, Greg Peters, the new co-CEO, had confirmed that the vast majority of subscribers who use the service but do not pay for it will be forced to do so in the near future.

The new post on the FAQ page reveals that sharing a password with people, who don’t live with the primary account holder, will become increasingly difficult. A single account can be accessed by people living in one household, while sharing an account across multiple locations will be charged additionally.

When a new device associated with the primary account is trying to log in from a different address, the user will have to enter a four digit verification code emailed/texted to the subscriber within 15 minutes to gain access. The device logged in from another location will have uninterrupted access to the account for the next seven days. IP addresses, device IDs and account activity are tracked by the streaming company to verify devices claiming to be in the same household.

Users travelling with the primary device will not face any login issues while at a different location. However, users may occasionally be requested for device verification if they are away from the primary household for an extended period. Netflix also added that “users won’t be automatically charged” when caught sharing passwords with people outside the household. Netflix also specified that the number of devices which can stream simultaneously will depend on the chosen plan, like earlier.

According to a Mashable report, an earlier version of the FAQ stated that a “trusted device” can be created when users connect to home Wi-Fi and use the app at least once every 31 days.

Netflix has previously shared that over 100 million households reportedly availed the benefits of a shared password significantly impacting the company’s revenue.

The streaming service had launched a new advertising-supported tier in November last year. Although it was Netflix’s least popular plan in its first month, the new tier resulted in a surge in sign-ups in December.

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