Sunday, 20 March 2022 12:00

Netflix to crack down on password sharing

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Do you share your Netflix password with friends or family, splitting the cost of the subscription across multiple homes? Well, Netflix has you in its sights, with a new charge being trialled in Chile, Costa Rica, and Peru that adds an extra fee for subscriptions shared outside the household.

Netflix provides three pricing plans, basic, standard, and premium, which - among other things such as HD and Ultra HD - allow you to watch content simultaneously on one, two, or four screens. In a multi-television household with parents and children, or flatmates, or other living situations this can be a smart way to maximise entertainment options without individual subscriptions.

However, shrewd subscribers have also realised they could share their subscriptions outside the household, perhaps splitting the subscription fee with friends, or even subscribing to alternate streaming services like Stan, Bing, Apple TV, Disney+, Paramount+, or any others from a growing number and thus increasing their entertainment options.

Netflix previously introduced two-step verification in a subtle attempt at curbing password sharing, but its new trial in South America indicates a stricter crackdown. While Netflix increased its pricing only recently, the crackdown brings additional charges to subscribers who share their accounts for up to two people outside their household. So far, the charges are only a few extra dollars per month - not an entirely new subscription - and it is unclear if and when Netflix will roll this feature out to other regions.

While Netflix was one of the first, and most popular, online streaming services to launch, the market is now saturated and fragmented through a vast number of new entrants and content deal exclusions. Netflix forecasts 2.5 million new subscribers in quarter one of 2022, which is its lowest number of new subscribers for some time. The company says new subscribers for the end of 2021 were two million under expectations.

Pragmatically, the feature shows as the option to "add an extra member," giving you a subaccount for your existing account. Subaccounts will have independent profiles, login credentials, and personalised recommendations. Additionally, Netflix has provided the capability to transfer a profile from an existing account into an entirely new account and thus preserve lists and viewing history.

Netflix says the trial has been in the works for a year and the company will be observing how valuable these two features are for users in Chile, Costa Rica, and Peru before expanding elsewhere.

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David M Williams

David has been computing since 1984 where he instantly gravitated to the family Commodore 64. He completed a Bachelor of Computer Science degree from 1990 to 1992, commencing full-time employment as a systems analyst at the end of that year. David subsequently worked as a UNIX Systems Manager, Asia-Pacific technical specialist for an international software company, Business Analyst, IT Manager, and other roles. David has been the Chief Information Officer for national public companies since 2007, delivering IT knowledge and business acumen, seeking to transform the industries within which he works. David is also involved in the user group community, the Australian Computer Society technical advisory boards, and education.

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