Last Spring, Netflix said it intended to figure out a way to block password sharing with different households. ‘USA Today’ reports that the streamer plans to implement that change “more broadly later in Q1.”
Netflix previously conducted a pilot program in Latin American countries where a “sub-account” could be added for $3 a month.
“From our experience in Latin America, we expect some cancel reaction in each market when we roll out paid sharing, which impacts near term member growth,” Netflix stated via a letter to shareholders. “But as borrower households begin to activate their own standalone accounts and extra member accounts are added, we expect to see improved overall revenue, Netflix, via letter to shareholders.”
To detect password sharing, ‘USA Today’ says Netflix “uses IP addresses, device IDs and account activity.” If a device is often used outside of a household, Netflix will ask for that device to be verified.
The change in sharing accounts comes a year after Netflix raised the price of its basic plan from $8.99 a month to $9.99 a month. The company also rolled out a $6.99 monthly plan with advertisements. . The company also rolled out a $6.99 monthly plan with advertisements.