By Hera Rizwan
On Tuesday, Netflix clarified how it intends to prevent users from sharing an account with people outside of their immediate "household" on its support page. The streaming giant shared updated FAQs on its official website detailing its new password-sharing policy.
This year, Netflix Inc. co-founder Reed Hastings stepped down as CEO after leading the company for more than two decades. He was succeeded by two long-time associates, Ted Sarandos (who was already co-chief) and Greg Peters. In an interview with Bloomberg earlier this month, Peters said that regulated password sharing will be implemented gradually which might lead to some "unhappy customers".
In a letter to its shareholders, dated January 19, 2023, it stated that the streaming platform will "start rolling out paid sharing more broadly" later in Q1.
What does the new policy say about sharing a password?
The updated 'Help Centre' page added 'Sharing Netflix with someone who doesn’t live with you' as a separate section. It says that a single account can be accessed by people living in one household. "Netflix will not automatically charge you if you share your account with someone who doesn’t live with you," Netflix said. The additional charge has not been mentioned in the policy, as of now.
"People who do not live in your household will need to use their own account to watch Netflix," the new policy said.
According to the new policy, Netflix will ask for verification if an account is accessed persistently from a location outside of the household. A four-digit verification code that will be emailed or texted to the subscriber within 15 minutes must be entered when a new device connected to the primary account tries to log in from a different address. The streaming service will monitor the IP addresses, device IDs, and account activity to confirm devices that claim to belong to the same household.
What happens if a person is travelling and the address changes?
Users who travel with their primary device won't have any trouble logging in when they're in another place. Users might, however, occasionally be asked for device verification if they spend a lot of time away from their primary residence.
In addition, Netflix stated that the number of devices that can stream at a time will depend on the selected plan, as it did earlier.
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How does the policy define 'household'?
The streaming platform's updated policy uses the word “household” to describe the immediate family of the account owner. The Netflix help centre page specifies, "A Netflix account is meant to be shared in one household (people who live in the same location as the account owner). People who are not in your household will need to sign up for their own account to watch Netflix."
Netflix has previously shared that the company's revenue is impacted heavily as over 100 million households worldwide reportedly availed the benefits of a shared password.
