Netflix is one of the prominent names when it comes to over-the-top (OTT) video-on-demand streaming services, regardless of which part of the world you reside in. In the midst of innuendos, hoaxes, and unconventional speculations, the go-to watch movie platform decided to outline and detail Netflix new password sharing rules that aim to prune users from sharing passwords and adding extra member subaccounts.
It appears that Netflix new password sharing rules are all set to hammer the last nail into the coffin of revenue killers. It is expected that Netflix will unveil a non-traditional set of guidelines that they have been planning to publish for weeks. According to their reports, Netflix apparently hadn’t had a great year in 2022 apropos of revenue, which ultimately led to the company canceling a number of shows and movies. Consequently, subscriptions plunged, resulting in an unprofitable/not-so-successful fiscal year that finally cited password sharing as the culprit.
The exact details are yet to be rolled out as rules are not confirmed. There was an accidental leak, which, however, doesn’t seem entirely accidental and suggests the company’s desire to allow password sharing within a household while enforcing a halt to outside usage. That means anyone who uses the same membership outside a household would be charged as an extra member.
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Last year Netflix started testing programs to curb or rather monetize account sharing after they suffered their biggest subscriber loss in a decade. Furthermore, allow me to remind you that the company previously launched a cheaper ad-enabled subscription called “Basics with Adverts” last year in the US, the UK, Mexico, Japan, Germany, Canada, France, Korea, Italy, Spain, Australia, Brazil, and now they may expand it to more countries to attract more subscribers from people who could not afford a subscription sooner.
Although the prices aren’t yet confirmed, a test implementation in China, Chile, Costa Rica, and Peru gives us an idea of the standard fees. If calculations are made, the fees appear to be more or less close to a quarter of the standard plan. If that passes through, each additional member subaccount in the US should cost more or less around $4.00 per month. Currently, the cheapest tier in the US (Basic with Ads) costs $7.00 per month.
In Netflix’s help center, there is a currently deleted update of regulations that deal with the need for users to create trusted devices. This update asks people to configure a defined primary location through their televisions. All accounts and devices signed in to the same account to be able to stream Netflix should be connected to the same Wi-Fi as the TV or the trusted device in the primary location. In the absence of a TV, a primary location will be determined based on IP address, device IDs, and activity. Not only that, but those with the same network and account would have to launch the app every 31 days and reconnect to the same Wi-Fi again.
As stated earlier on the help center page, “To ensure that your devices are associated with your primary location, connect to the Wi-Fi at your primary location, open the Netflix app or website, and watch something at least once every 31 days.”
At the moment, there is no specific date, but Netflix announced that the rules would be released before the end of the first quarter of 2023, starting with a few countries, the names of which have not yet been released, and then expanding to more countries later this year. Until then, we would like to know your views on Netflix new rules in the comments below.
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