Netflix to charge for password sharing! Here is how it will work and what you can expect from this upcoming change...

(This article is authored by Alar)

As Reed Hastings, Netflix's former CEO, announced last year that the practice of sharing passwords will be discontinued gradually, Greg Peters and Ted Sarandos, Netflix's new co-CEOs, recently stated in an interview that the practice of sharing Netflix passwords will be discontinued in the near future. In India, Netflix offers four plans priced at Rs 149, Rs 199, Rs 499, and Rs 649.

Netflix wrote in the report, "While our terms of use limit the use of Netflix to a household, we recognize this is a change for members who share their account more broadly". The streaming giant further said, "As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don't live with." Reports suggest that new password-sharing rules could come into force sometime in April. The streaming giant has not revealed how much will it charge users in India.

In addition to limiting account usage to one household, the streaming giant has added new features to enhance the user experience. Users can now view which devices are accessing their account and transfer existing profile information to new accounts. They will also have the option to share their account with non-household members for an additional fee.

In a previous announcement, Netflix detailed how it will find the users who use shared passwords by monitoring users' Internet Protocol (IP) addresses, device identifiers, and account activity in order to enforce the new password sharing rule. The streaming service can then tell who isn't part of a specific household but still wants to watch Netflix without paying.

Netflix has been testing the end of password sharing in several Latin American countries, including Costa Rica, Chile, Peru, and others, by charging $3 (approximately Rs 250) to individuals who wish to use a friend's Netflix account. The online streaming platform plans to increase its subscriber base by 15 to 20 million, with a focus on India, according to a report. The OTT giant stated in its shareholder letter, "We expect to roll out paid sharing more broadly later in Q1’23. We anticipate that this will result in a very different quarterly paid net adds pattern in 2023, with paid net adds likely to be greater in Q2’23 than in Q1’23."

The report claims that the video streaming platform will not compromise the user experience when rolling out regulated password sharing. The video streaming platform is experimenting with novel methods to expand its subscriber base. Restricting password sharing is one of these initiatives. Another option is to implement a plan supported by advertisements. Netflix has recently introduced a new $6.99 ad-supported plan in the United States in an effort to attract users who do not wish to pay a substantial amount for a Netflix subscription.