Netflix is to block millions of people from viewing its content with a new crackdown on password sharing. Netflix has started to clamp down on customers sharing their accounts with people they do not live with.
The streaming giant started a crackdown in Chile, Costa Rica and Peru on people sharing passwords and is now expanding the scheme. To make things easier, Netflix will offer an option to add "paid sharing" which is less than a full subscription - reports The Express.
Netflix said: "We expect to start rolling out paid sharing more broadly. Today’s widespread account sharing (100M+ households) undermines our long-term ability to invest in and improve Netflix, as well as build our business."
Netflix is adding features such as easy ways to transfer profiles to a new account and being able to monitor devices using accounts.
"While our terms of use limit use of Netflix to a household, we recognize this is a change for members who share their account more broadly," the streaming firm said.
"So we’ve worked hard to build additional new features that improve the Netflix experience, including the ability for members to review which devices are using their account and to transfer a profile to a new account.
"As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with. As is the case today, all members will be able to watch while traveling, whether on a TV or mobile device."
It's not yet known when the rules will come into force.
It comes as the UK's Intellectual Property Office (IPO) said password sharing may amount to “secondary copyright infringement”.
Sharing log-in details for streaming services with family and friends is a widespread practice, despite Netflix’s terms stating that “people who do not live in your household will need to use their own account”.
An IPO spokesperson said: “There are a range of provisions in criminal and civil law which may be applicable in the case of password sharing where the intent is to allow a user to access copyright protected works without payment.
“These provisions may include breach of contractual terms, fraud or secondary copyright infringement depending on the circumstances.”
It is up to the streaming service provider to take action through the courts if required, the IPO said.
Netflix has introduced a new cheaper ad-supported tier costing £4.99 a month to attract customers.
Disney+ does not allow users to share their password with other households, while Amazon Prime customers can share their account with one other person.
