Netflix is expanding its limitations for password sharing outside of the United States. Extra fee subscriptions are being rolled out today in Canada, New Zealand, Portugal, and Spain in an effort to address this issue in Latin America and other parts of the world.
LOS ANGELES, CALIFORNIA - MAY 29: A billboard advertises a Netflix television series on Hollywood Boulevard on May 29, 2019 in Los Angeles, California. Netflix chief content officer Ted Sarandos said the company will reconsider its "entire investment" in Georgia if a strict new abortion law is not overturned. According to state data, the film industry in Georgia contributed $2.7 billion in direct spending while supporting 92,000 local jobs.Mario Tama/Getty Images
(Photo : Mario Tama/Getty Images) LOS ANGELES, CALIFORNIA - MAY 29: A billboard advertises a Netflix television series on Hollywood Boulevard on May 29, 2019 in Los Angeles, California. Netflix chief content officer Ted Sarandos said the company will reconsider its "entire investment" in Georgia if a strict new abortion law is not overturned. According to state data, the film industry in Georgia contributed $2.7 billion in direct spending while supporting 92,000 local jobs.
Adding 4 More Countries
Over 100 million households are sharing Netflix accounts, impacting the company's ability to invest in significant new TV and film offerings. The company aims to resolve this issue by limiting the access of accounts to share their passwords.
Based on a report from Reuters, Netflix uses different approaches to avoid this issue, including setting up a primary location, managing account access and devices, transferring profiles, and utilizing the platform while traveling.
But for an extra member in the subscription, Netflix will be charging C$7.99 a month per person in Canada, NZD$ 7.99 in New Zealand, 3.99 Euros in Portugal, and 5.99 Euros in Spain. New features will be added based on members' feedback as they continue to improve the watching experience for their subscribers.
As the company values its members and recognizes the different approaches to entertainment choices, Netflix argues in its announcement that the platform is intended for one household only. Allowing accounts outside the household creates confusion about when and how people could share.
Aside from this reason, Netflix's competition in the streaming market has been growing and household costs are constantly rising because of the macroeconomic situation. Engadget reported that this caused Netflix to lose subscribers in the first half of 2022, which prompted them to focus on password sharing and launching ad-supported plans last November in 12 countries.
Chief Operating Officer Gregory Peters warned the investors last month to expect canceled subscriptions, as these changes may not be for everybody and would not be universally popular. But this move may eventually make up for those losses.
Subscribers were given a free two weeks for using an account in a different household as a preparation for the big change. After that, subscribers will now have to pay the extra fee to avoid getting blocked from its access.
Monthly Sign In
As a part of the new restrictions, users will be required to sign in to Netflix at least once a month to continue watching movies, shows, or any content on the platform. Through this process, it creates a trusted device to utilize the platform even when users are away from their primary locations.
But this new rule is reportedly giving users only 31 days to watch outside their set-up primary locations. The document says that users' devices may be blocked from watching Netflix once they exceed the deadline.
