Netflix Password Crackdown: 5 Things To Know
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Business - Companies - Industry - April 19, 2023

Netflix Password Crackdown: 5 Things To Know

Netflix, a subscription-based screaming device, has announced its move to finally crackdown on password sharing. This means that the company is taking measures to detect when multiple people are using the same account.

This new policy known as the “paid sharing”  policy which is still inoperative generally has its members paying a fee to share their accounts with people outside of their households.

The company had earlier announced the policy would take effect at the end of the first quarter of the year. However, according to the company, its shift in the timing was due to some tweaks it made to the program. 

This came as a surprise to many because the online streaming giant started out by promoting sharing of account information with families and friends which its users have grown accustomed to.  In this article, we will explore five things to know about the Netflix password crackdown.

Why is Netflix cracking down on password sharing?

The streaming platform wants to ensure that it is getting paid for its content, hence the crack down on password sharing. Netflix initially did not have restrictions concerning subscribers sharing their passwords, probably because the company hasn’t quantified how much revenue it may have lost from password sharing.

Netflix also reported that its subscriber base had reduced for the first time in a decade, which password sharing was partly to blame. The company has made moves to restrict its subscribers from sharing their passwords, that is, an account per user for subscribers outside a particular household.

How will Netflix detect password sharing?

Netflix is using a variety of methods to detect password sharing, including analyzing login patterns and device usage. This method would involve a combination of IP addresses, device IDs, and the account activity from the devices signed into the Netflix account.

For example, if a user logs in from one location and then suddenly logs in from a different location far away, that could be a sign that the account is being shared. The user may be asked to verify a device by entering a verification code sent to the account holder.

What will happen if Netflix detects password sharing?

Netflix’s Help Center stated that you can only share your Netflix account with people who live together in a single household.

However, if  Netflix detects that an account is being shared with someone who doesn’t live in your household, it will send a message to the account holder asking them to confirm that they are authorized to use the account. If the account holder does not respond, the account may be suspended.

How can users avoid the Netflix password crackdown?

Netflix subscribers can avoid the Netflix password crackdown by not sharing their passwords with other people outside their household. The policy is clearly stated in the Netflix Terms of use.

Users can set up separate profiles for each person so that each person has their own viewing history and recommendations.

Would password sharing be illegal?

The legality of Netflix password sharing is a bit undefined. However while sharing passwords is not explicitly illegal, it is against Netflix’s terms of service. Therefore, if Netflix determines that you are sharing your password, they may terminate your account or take other actions, such as limiting the number of simultaneous streams you can have.

It’s best to abide by Netflix’s terms of service and only share your password with people whom you trust and who are within your household. 

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