Netflix reveals details of crackdown

Recent information has been released regarding Netflix’s efforts to prevent members from sharing their passwords beyond the people living in the same house. The Netflix Help Center for Costa Rica, Chile, and Peru stated that only those who live with you can access your account.

People not part of what Netflix considers a household will need to get their own account. The account owner can also add them as an “extra member” for a fee less than the basic plan.

If the account is being persistently accessed from a different location, the device may be blocked from using Netflix. To detect devices associated with the primary location, Netflix uses IP addresses, device IDs, and account activity.

For a device to be associated with the primary location, the person must connect to the Wi-Fi, open the Netflix app or website, and watch something at least once every 31 days. People can still use the streaming service while traveling by using a temporary access code or updating the primary location of an account.

In a January 19th shareholder letter, Netflix indicated that over 100 million households engage in account sharing which could affect their ability to grow the business.

The paid-sharing system is planned to launch in the first quarter of 2023, and short-term engagement could see some negative impacts. However, Netflix expects engagement to increase over time.

At the end of the fourth quarter of 2022, the total subscriber count was 230.75 million, compared to 221.84 million in the same period of 2021.