Netflix has been trying to take action against so-called account sharing for a while. In the spring of 2022, the streaming service launched a trial where those who share their accounts will be asked to pay.
If Netflix has its way, primary account holders could pay more in the future if they share their login information with others. However, the extra payment is not intended to be a penalty, but rather appears as a kind of attached, significantly cheaper subscription for users outside the household. But how does Netflix account sharing even recognize? There are several test runs for this.
Current measures – this is how Netflix wants to recognize unauthorized account sharing
So far, it is still not fully known how Netflix wants to check whether users actually live together. But there are different approaches. The music service Spotify, for example, uses spot checks (sending in documents/proof of address) to ensure that all users of a family package are also registered at the same address. The announcement by the Swedish music portal that it would randomly check the location of users using Google Maps came to nothing for data protection reasons.
Netflix tests out loud The Verge in Argentina, El Salvador, Guatemala, Honduras and the Dominican Republic, meanwhile, a different approach. Here the Netflix account is linked to a TV or a device connected to the TV to expose account sharing. This should work as follows: In the countries mentioned, the Netflix account is assigned to a primary home where users can access the streaming service via all devices in the house. However, if subscribers log in from outside this home, a window will appear allowing them to add an additional “home” for a fee.
The Netflix account can be used on the additional device for a period of up to two weeks at no extra charge, as long as the corresponding account has not already been used at this location within a year. If this is the case, or if usage continues for a longer period of time without purchasing the relevant account sharing option, Netflix will lock the TV.
At the same time, Netflix is also working on a feature in these countries that will allow users to track account sharing. You can see in a mask where exactly the corresponding account is used and restrict access if necessary.
By paying the extra fee, account holders can legally add up to two additional people outside of their household to their subscription, the magazine explains Variety Netflix’s plans. The additional users, in turn, get almost self-managed access to Netflix – including their own profile, recommendations, login and password. The streaming provider has already revealed the costs for the attached account.
According to this, Netflix charges an extra fee of 7.9 Peruvian Sol (PEN) in Peru, which corresponds to the equivalent of 1.92 euros. In Costa Rica, the fee is US$2.99, or about €2.71, and in Chile it is 2380 Chilean Peso (CLP), about €3.27. That’s not much for an almost independent and legal access to Netflix. However, it is questionable how many users will make use of the offer. Because as long as Netflix has no way of precisely identifying and locating users of illegal account sharing, some are likely to continue with their previous behavior. But Netflix has been working on this point for a long time, as a test run last year shows.
Netflix account is requested
US media reported that in March 2021 there were occasional query windows when logging in with the Netflix account. The text in the window was:
“Start your own Netflix today. If you don’t live with the owner of that account, you’ll need your own account to look further.”
A request to confirm the account appeared below the message. Confirmation by e-mail, SMS or confirmation at a later date were listed as options.
So far, the window only appeared when trying to log on to a TV set. It is unclear whether Netflix can recognize that a login attempt is made from a location that does not correspond to the location of the account owner. The company has long been working on a tool to detect when the password is shared with others. Netflix only allows one account to be used within one household.
TECHBOOK asked Netflix whether the company wanted to take action against account sharing. A spokesman told us: “This test is intended to ensure that Netflix accounts are only used by people who are authorized to do so.” The tests would also not take place in Germany.
So the company is pursuing a two-pronged strategy. Firstly, the test is designed to ensure that members adhere to the Netflix Terms of Service. On the other hand, it is a warning not to simply pass on the login data to third parties for your own protection.
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When is it allowed to share the password?
Basically, Netflix offers some account sharing features aimed at allowing multiple people to use the same login. This is even anchored in the company’s terms and conditions. There it is written that sharing an account is generally allowed. However, this only applies to people living in the same household. The basic subscription (7.99 euros per month) is intended for single people, while the standard subscription is designed for two-person households and the premium subscription is intended for families with up to four users.
With the basic subscription, series and films can be accessed on just one end device. On the other hand, with the standard subscription, you can stream on two devices at the same time. Owners of the premium subscription can even enjoy being able to watch on four devices at the same time.
Related to the topic: Is it punishable if I share my account?
When Netflix Account Sharing Prohibited
That many Netflix subscribers share their password is not just a guess. The behavior is so popular among Netflix customers that it’s almost de rigueur. This was the result of a survey by the TV station CNBC. More than 35 percent of respondents said they regularly share accounts with Netflix. On average, one in ten used the streaming service in this way without paying for it.
The basic subscription is actually intended for single households, while the standard and premium subscriptions were designed for families whose members all live under one roof. But many friends or colleagues share a premium account to reduce monthly costs. This is of course a thorn in Netflix’s side.
The provider is said to be missing out on monthly income of more than a hundred million dollars through this handling. Another consequence of passing on account data is the stagnation of user numbers, which is no less problematic for the company than the financial losses.
However, the focus is not only on passing on the passwords of individual accounts, it will also soon no longer be possible to use family accounts from different IP addresses.
Netflix product boss Greg Peters already threatened when the business figures were announced in the third quarter of 2019 that the company wanted to declare war on the disclosure of passwords in the near future. The events are being followed closely, he explained and promised: “We will find a consumer-friendly solution to this problem.”
Netflix hasn’t always been against account sharing
Account sharing wasn’t originally a thorn in Netflix’s side. After all, the company itself has summoned the spirits, which it can no longer get rid of. In 2017, the streaming portal propagated its own generosity and sent a tweet with the message “Love is sharing a password” around the world. Even then, users were irritated and asked if this wasn’t illegal. At this point, Pandora’s box was open.