Netflix’s NEW rules announced on Tuesday will mean users will be charged for sharing their passwords between households.
But is hookup lending banned by the platform, and how much more will wicked people pay under the new plans?
Can you share a Netflix connection?
Netflix has turned a blind eye to password sharing for years, but on Tuesday revealed plans to crack down on the practice.
In an earnings call, the company claimed around 100 million households broke its rules on the practice.
As it stands, all users with access to an account are assumed to belong to the same household.
They can watch on multiple screens within that household, including different screens simultaneously.
However, if you share a password with someone who lives elsewhere, Netflix takes no action against you at this time.
Netflix boss Reed Hastings said on Tuesday: “When we were growing rapidly, it wasn’t a high priority to work on [account sharing].
“Now we are working very hard on it.”
Hastings said Netflix will start charging additional fees to accounts if they are found to be sharing a connection between households.
When and how much will I be charged for password sharing?
It emerged last month that the streaming giant was already testing the extra charges in Chile, Costa Rica and Peru.
Users who share passwords are forced to pay around £2/$2.70 on top of their monthly subscription.
During its first-quarter earnings call on Tuesday, Netflix said it would expand its test to other countries, including the United States, next year.
The tech titan stressed that it will continue to test the feature over the next 12 months before rolling it out more widely.
“Frankly, we’ve been working on this for about two years…just over a year ago we started doing some light test runs that…informed our thinking and helped us build the mechanics that we’re rolling out now,” Netflix chief product officer Greg Peters said during the earnings call.
“We have just done the first tests of large countries, but it will take some time to solve this problem and find the right balance.
How will the new system work?
Under the latest crackdown, bill payers will be able to add sub-accounts for up to two viewers who live elsewhere.
Netflix said it needs to stem the problem somehow so it can continue to invest in new big-budget TV shows and movies.
As part of this new decision, the company announced that subscribers will also be able to transfer profiles to a new account or an additional member sub-account.
That means they’ll be able to take all of their viewing history, favorite shows, and personalized recommendations with them.
“We recognize that people have many entertainment choices, so we want to make sure that any new features are flexible and useful for members, whose subscriptions fund all of our great TV shows and movies,” said Chengyi Long, Director of Netflix’s product innovation.
“We will work to understand the usefulness of these two features for members in these three countries before making changes elsewhere in the world.”
Why is Netflix cracking down on password sharing?
Netflix is looking for ways to boost revenue after subscription numbers soar during Covid-19 shutdowns.
However, rising subscription costs and increased competition from Amazon Prime and Disney+ are taking their toll.
On Tuesday, Netflix revealed it had lost subscribers for the first time in a decade.
Netflix ended the first quarter of this year with 221.6 million subscribers, slightly less than the last quarter of last year.
The company blamed the quarter-over-quarter erosion on the suspension of its service to Russia due to Moscow’s invasion of Ukraine.
The Silicon Valley technology company reported net income of $1.6 billion in the latest quarter, up from $1.7 billion in the same period a year earlier.
Shares of Netflix fell about 25% to $262 in aftermarket trading following the release of earnings figures.
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