Netflix has issued a warning to its users regarding password-sharing as the streaming giant begins to crack down on this practice.
On Tuesday (May 23) Netflix announced that it would be sending an email to its U.S. subscribers who share their account passwords with individuals outside their households.
The email will contain a clear 12-word warning message stating, "Your Netflix account is for you and the people you live with."
Netflix had previously indicated that it would be taking steps to address the issue of password-sharing by the end of June.
The California-based firm said: 'A Netflix account is for use by one household. Everyone living in that household can use Netflix wherever they are – at home, on the go, on holiday – and take advantage of new features like Transfer Profile and Manage Access and Devices.'
As Netflix takes a stricter stance on password-sharing, it is important for users to be aware of the implications this crackdown may have for their viewing habits. Sharing passwords outside of the household may no longer be an option.
What are the new rules and how much will it cost?
According to their website, there are two options if people want to share a Netflix account with someone outside of their household. The first is transferring a profile to a new membership that person pays for.
The second is to buy a non-household membership, which costs $7.99 per month.
This will allow non-household members to use the account. For those on the Netflix Standard plan ($15.49 per month), users can add one non-household member to the plan for $7.99 per month.
Users who have the Netflix Premium package (which includes 4K streaming) will be able to add up to two non-household members.
However, they’ll have to pay the $7.99 per month fee twice. Netflix said in its statement that it will notify U.S. users via email this coming Thursday.
How will it be enforced?
Netflix will employ various methods to enforce this policy.
The streaming service will likely use a person's geographic location, as determined by the IP address of any internet-connected device, to verify the members of a household.
Netflix's website also states that the company utilises IP addresses, device IDs, and account activity from devices linked to the Netflix account to determine which devices are associated with the same household.
Why did Netflix make the change?
The decision by Netflix to crack down on password-sharing represents a significant shift in its strategy.
In the past, the streaming service had actually encouraged users to share their passwords as a means of attracting more viewers. This change in approach, announced in January, caused quite a stir among the company's fan base.
Netflix's tweet from six years ago stating, "Love is sharing a password," serves as a reminder of its previous stance.
With growing competition in the streaming industry from platforms like Disney+, Hulu, Peacock, and Paramount+, Netflix is seeking to maximise revenue from its existing subscriber base.
By curbing password-sharing practices, the company aims to ensure that each account is used exclusively by individuals within the same household.
