Netflix restricts account sharing worldwide

Netflix announced some time ago that it would take tougher action against account sharing. At the latest since the start of a test phase in Latin America, in which the possibilities of account sharing were massively limited, it is obvious that Netflix will implement its plans. Now the company has announced that it wants to implement the measures tested in Latin America worldwide. In the spring of 2023, the plan is to put an end to shared accounts.

Budget narrowly defined

A letter Netflix sent to shareholders as part of the presentation of its quarterly results announced the implementation of the measures described. The test phase in Argentina, the Dominican Republic, El Salvador and Honduras has shown exactly how Netflix intends to proceed: sharing an account will now only be possible within a household. A household is defined as people who live in the same house. Physical distance between two people will consequently mean that Netflix will prevent the sharing of an account. This is likely to be very unsatisfactory for many people. A U.S. market research institute states, for example, that one-third of users have passed on their password to at least one other person. Most of these are people close to them, but not necessarily living in their own home. Against this background, it seems possible that the actual number of Netflix users will drop drastically. The calculation to persuade the people who have been watching for free to also take out a paid subscription does not necessarily have to work out. Netflix has to all appearances, however, already made an effort to make the switch as attractive as possible.

Two switchover options

It should be possible to convert the user profile within an account into an own account. The advantage for users is that their existing lists remain in place and they continue to receive recommendations that are tailored to their previous viewing behavior. In addition, it should be possible to open sub-accounts for other people outside one’s own household. These are to be more favorable than own accounts. It is not yet clear whether there will be any restrictions.

Overall, Netflix seems to be looking for additional sources of income. Most recently, the company announced that it would offer a discounted subscription version that works with advertising.