Netflix will continue to tighten its rules of use. The streaming platform confirms the upcoming deployment of paid account sharing. An announcement related in its latest financial report (Q4 2022) intended for the shareholders of the company and relayed by The Verge.
A service launched before April 2023
“Today’s widespread account sharing (over 100 million households) compromises our long-term ability to invest in and improve Netflix and grow our business”writes Netflix, which plans to implement its password sharing billing system before April 2023.
To identify misuse of an account, the video on demand giant relies on the IP address of the internet connection, the ID of the device used to connect, and finally “account activity”specifies the company on its site. For legitimate use outside of your current geographic location, Netflix may ask you, after a certain period of time, to verify your account by email or SMS. A procedure that will be repeated over time, to discourage potential fraudsters.
For users wishing to share their account on a regular basis with an acquaintance outside the home, Netflix will offer additional billing. In Latin America, where the service is already deployed, the monthly additional cost is around $3/month, for a maximum of two cyber-squatters.
A long-term strategy
“Don’t get me wrong, I don’t think consumers are going to love this service from the start.”, warned Ted Sarandos, co-CEO of Netflix in December. A comment reiterated in the firm’s latest financial report. By implementing this measure, the commitment could suffer a “negative impact” in the short term, according to analyzes by the consulting firm Nielsen. On the other hand, in the longer term, this strategy could prove to be profitable, with a gradual growth in subscription subscriptions. A risky bet based on the quality of the “programmingproposed by Netflix and its impact on account squatters, who may ultimately be induced to sign up.
In parallel with these announcements, Netflix confirms a notorious change of direction at its head. Reed Hastings, the founder, retires and cedes his place as co-director to Greg Peters and Ted Sarandos. Hastings will, however, continue his participation in the activities of the group as executive chairman. “Ted and Greg are now co-CEOs. After 15 years of collaboration, we have an excellent bond and I am very confident in their leadership.“, he started in a tweet.