Netflix enacts new policies
Netflix logo and stocks (Photo Courtesy of: Deadline.com images)
By Jayden Greene, staff writer
Netflix introduced the new year with some significant changes. The streaming service brought some unwelcome news in early February when reports emerged that they would be cracking down on password sharing by implementing new guidelines. The new rules essentially block anyone outside of a single household from using the same Netflix account, meaning everyone linked to one account must be in the same location as the primary account holder.
Predictably, this was met with less-than-enthusiastic reception on the Internet and in households. Junior Peter Kachigan says, “I hate them to be honest. The restrictions are way too ridiculous.” Many people have predicted the shift would cost Netflix subscribers, while others called out the streamer for its confusing new rules. Here’s everything we know about Netflix’s biggest changes, including when it will go into effect and why it’s even starting in the first place.
It seems the consensus idea is that this is all for money. The company is cracking down on password sharing in an effort to gain more subscribers. With multiple people sharing one account outside of a single household, Netflix is losing out on profits it could make if people who didn’t live together each had their own, separate account. In an earnings report last year, Netflix shared that over 100 million households share an account, which they noted “undermines our long term ability to invest in and improve Netflix, as well as build our business.”
The company then previewed two new changes, explaining in a March 2022 blog post that they would be rolling out a Profile Transfer option, which allows existing users to move their Netflix profile to a separate, paid account if they are linked to a primary household. There was also an Extra Member feature, which allows people who do not live in the same household to share an account for an added fee. According to qz.com, Netflix could gain $1.6 billion from password-sharing fees alone, once the new changes go into effect. The rules detailing Netflix’s new password sharing policy leaked in early February, but the good news is that they don’t go into effect just yet. The guidelines reported by The Streamable.com on Tuesday, Jan. 31 only currently apply in certain countries, the U.S. excluded. Junior Jahshua Richardson says, “I know that these new prices suck but since I don't got to pay for it, it don't bother me.”
Unfortunately, time is running out for U.S. customers, who only have a month or two left to enjoy their shared Netflix accounts. Under Netflix’s new rules, people who do not live in the same household cannot share a Netflix account. Though this was always the case, now Netflix is really cracking down on it. The truly big change coming is device verification, which will prompt users outside of a household to verify the device they are using to watch Netflix.
The primary account holder will have to set a primary location for their Netflix account, and users outside of that location will be asked to confirm their device with a code only accessible to the primary account holder. Netflix will send the account holder an email containing a four-digit code, which can be used to verify the device outside of their household. The code expires after 15 minutes. Anyone trying to use a Netflix account that isn’t their own will be automatically identified through the Wi-Fi they are using, and Netflix will flag users that are trying to stream content on an account that is not connected to the same Wi-Fi as their primary location.
Now is the time to make your decision whether or not you’ll still continue your subscription with Netflix. The company plans to implement their new password sharing rules in America by the end of the first quarter, likely by March 31.