Netflix’s Password Crackdown Hits The U.S.

Netflix Testing Password Crackdown

On Tuesday, Netflix officially began rolling out its paid sharing feature in the United States – the password crackdown requires all account users must be in the same household and live in the same location as the primary account holder.

Users living outside of a household will be able to join the main account for an additional $7.99 a month – higher than an ad-supported standalone Netflix subscription which is $6.99, but less than the $9.99 a month for the basic plan.

Primary account holders are now prompted to set a household location on their devices, and Netflix indicates subscribers will still be able to use their accounts whilst travelling.

Factors such as how often the device has used the Wi-Fi at the primary location will be used to determine non-household members, according to a Netflix spokesperson. Those users will be prompted to transfer their profiles to a new Netflix subscription.

Primary account holders with premium subscriptions can add up to two non-household members to their accounts for the $7.99 monthly fee. Standard plan subscribers can add up to one outside member. Ad-supported or basic plans do not support the feature.

The U.S. rollout arrives three months after Netflix began its crackdown in Canada, New Zealand, Portugal and Spain earlier this year.

In Canada, the crackdown resulted in a larger paid membership base even as there is a “cancel reaction in each market… which impacts near-term member growth.”

Source: THR