Netflix Password-Sharing Crackdown Begins in the U.S.
Netflix is bringing its password-sharing deterrents to the U.S.
On Tuesday, the streaming giant began rolling out its paid sharing feature in the U.S., which requires that all account users must be in the same household and live in the same location as the primary account holder. Users living outside of a household will be able to join onto the main account for an additional $7.99 a month, though stand-alone Netflix subscriptions begin at $6.99 a month for the ad-supported version and $9.99 a month for the basic plan.
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As part of the rollout, primary account holders will be prompted to set a household location on their devices, though subscribers will still be able to use their accounts when traveling. Non-household members will be singled out based on factors like how often that device has used the Wi-Fi at the primary location, according to a Netflix spokesperson, and will be prompted to transfer their profiles to a new Netflix subscription.
Primary account holders with premium subscriptions can add up to two non-household members to their accounts for the $7.99 monthly fee, while standard plan subscribers can add up to one outside member. The paid add-on feature is not available for those on the ad-supported or basic plans.
The U.S. rollout arrives roughly three months after Netflix began its crackdown in Canada, New Zealand, Portugal and Spain. The rollout has already resulted in a larger paid membership base in regions like Canada, according to Netflix’s Q1 earnings letter, even though there is a “cancel reaction in each market … which impacts near term member growth” after the news is announced.
“As borrowers start to activate their own accounts and existing members add ‘extra member’ accounts, we see increased acquisition and revenue. For example, in Canada, which we believe is a reliable predictor for the U.S., our paid membership base is now larger than prior to the launch of paid sharing and revenue growth has accelerated and is now growing faster than in the U.S.,” Netflix said in the letter.
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