Netflix has recently taken a significant step in India by implementing a policy to end password sharing, limiting account access only to members of a "Household". The company's decision is part of a broader global crackdown on password sharing beyond immediate family members, aimed at boosting revenue following a challenging period last year. In May, Netflix announced its determination to curb this practice, and the results have been encouraging.
The streaming giant reported a notable increase in subscriptions, with nearly six million new users signing up in response to the password-sharing restrictions. As a result, Netflix now boasts a staggering total of 238 million subscribers worldwide and achieved an impressive profit of $1.5 billion in the most recent quarter.
A statement from Netflix clarified that all members living in the same Household could continue to enjoy access to the platform across various devices, including at home, while travelling, or during vacations. Additionally, they introduced new features like Transfer Profile and Manage Access and Devices to enhance the user experience.
To ensure compliance with the policy, Netflix has begun sending out emails to customers found to be sharing their accounts beyond their Household. This action is part of the company's efforts to create a level playing field for all users and to preserve the integrity of its subscription model.
For those unaware, a "Netflix Household" refers to a group of online devices associated with the primary location where you access Netflix content. This designation can be established through a TV device, and any other devices that share the same Internet connection and use your Netflix account will be automatically included in your Netflix Household.
In addition to enforcing password-sharing restrictions, Netflix has introduced "borrower" or "shared" accounts to convert non-paying users. This enables subscribers to add extra viewers to their accounts for a higher price or transfer viewing profiles to new accounts.
It should be noted that at the time of writing, an option to manage Household users didn't appear on Account settings. However, now that the update is officially rolled out, an option is expected to be added soon. Additionally, the plan pricing also remains the same so far, starting at Rs 149 per month for mobile users and going up to Rs 649 for premium users.
Netflix's crackdown on password sharing has not been confined to India; it spans more than 100 countries worldwide, including major markets like the US, UK, France, Germany, Australia, Singapore, Mexico, and Brazil. The results have been claimed to be favourable, with a substantial increase in the number of subscribers globally.
As part of its evolving business model, Netflix also launched an ad-subsidised offering and recently discontinued its lowest-priced ad-free plan in the US, priced at $10 per month.