Netflix India has announced that it has put an end to password-sharing in India. Now users cannot pay to share accounts with their relatives or friends. The restriction on account sharing is already effective in the US and paid sharing has taken place according to the new rules. The OTT service giant has been rolling in password-sharing facilities at a global level to refrain users from sharing their accounts with anyone except family.
As per the Netflix statement, “A Netflix account is for use by one household. Everyone living in that household can use Netflix wherever they are — at home, on the go, on holiday — and take advantage of new features like Transfer Profile and Manage Access and Devices.”
The company plans to send emails to users distributing passwords with friends and relatives, notifying them that the account is meant for a single-family living together. Individuals outside the household have to transfer their profiles to a new account and generate a separate subscription.
Indian consumers generally share their passwords to minimize the cost by splitting between them. New rules just ended this arrangement.
However, the company has allowed US citizens to pay some additional amount and share accounts with others.
Netflix Password Sharing Identification Process
Netflix tracks users’ device ID, IP address, and account activity across signed-in devices from the same account. IP address identification of the company will not allow users to share the platform outside the family.
Users need to enter an access code for 7 days other than the primary account to log in to the OTT platform outside the family. Also, additional users need to use the lame Wi-Fi at least once in 31 days.
Netflix During Travelling
Users using the app will not get affected during traveling, says Netflix. Although, the OTT giant has not made clear how. Probably, it will be tracking device ID to trace and verify device identity.
In its shareholders’ letter, Netflix has made clear that it is not going to provide paid sharing in India as the price has already been slashed for Indian subscribers. Netflix is the costliest OTT service in India as it offers a premium plan with 4K content and log-in for up to 4 devices at Rs 649/month.
Crackdown Boosts Business
The step of cracking down on the password-sharing option has already boosted OTT business for Netflix with an increased number of added subscribers during Q2 2023. “Year over year revenue growth of 2% in Q4 (10% on a foreign exchange (F/X) neutral basis) was driven 2 by a 4% increase in average paid memberships. ARM declined 2% year over year, but grew 5% on a F/X 3 neutral basis 2. Revenue was slightly above our beginning-of-quarter projection, as paid net adds of 7.7M (vs. 8.3M in Q4’21) came in higher than our 4.5M forecast, due to both strong acquisition and retention, driven primarily by the success of our Q4 content slate,” says company’s shareholder letter.
