Netflix’s plan to stop password sharing
Netflix has detailed a new device verification approach that could dissuade users from sharing their password with people outside their main household.
Although the company’s user policy bars customers from sharing their login details with people outside their household, the practice has become commonplace.
Estimates indicate it has cost the streaming giant billions of dollars in revenue each year, something it is trying to remedy with a paid-for account-sharing feature expected to be rolled out in the coming months.
Ghacks.net has spotted an updated FAQ section on the Netflix website suggesting the streaming service is closer to launching this feature broadly.
In a section titled “Sharing your Netflix account”, the service explained that it would start distinguishing between household and external devices.
To do this, it will rely on information such as IP addresses, device IDs, and account activity from devices signed into the Netflix account to determine which devices were being used in the primary account holder’s home.
If it detects that a device outside the household signs into an account or is used persistently, Netflix could ask the primary account holder to verify the device before it may stream content.
“We do this to confirm that the device using the account is authorised to do so,” Netflix said.
To verify an external device, its user must enter a 4-digit code sent to the primary account holder’s email address within 15 minutes. After this period, the code will expire, and a new request will be required.
The service said it might periodically require re-verification of devices that it detects are being used outside the household.
Verification will not be required if a device is on the same Internet connection as the primary account holder’s household.
Essentially, the plan is to annoy the primary account holder with verification requests from devices likely freeloading on their account.
Paid-for account sharing coming soon
Netflix has tested two versions of a paid-for account-sharing feature in Argentina, Chile, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras and Peru.
One variant allows for adding a single additional member, with their own login details and personalised recommendations, at a fraction of the monthly cost of a full account.
Prices for an add-on member vary by country.
The other approach also costs less than the monthly fee but allows for adding multiple households. In that instance, Netflix charged $2.99 (R51.27, excl. VAT).
If the fee is similar in South Africa, it will be roughly the same as the price of a Mobile subscription (R49) — half the cost of a Basic package.
However, Netflix has not confirmed how its paid account-sharing feature will work or what it will cost when it launches in South Africa.