Netflix launches new account sharing rules to try and get people to pay for their own logins
Company will encourage people to pay a fee to share their account with people outside their household
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Your support makes all the difference.Netflix has launched the latest stage in its crackdown on account sharing, with new rules aimed at encouraging people to pay up.
The rules will allow people to pay extra to share an account, and is coming to limited countries initially.
But it is one part of a plan that could eventually affect all of the 100 million people that the company estimates are sharing their accounts, against Netflix’s rules.
For years, Netflix has taken a relatively permissive approach to shared accounts, declining to enforce what have long been stated rules. But in recent months – amid falling revenues and a new search for growth – it has suggested that it will be trying much harder to chase people down.
The latest part of its plan is the introduction of paid sharing in Canada, New Zealand, Portugal and Spain on Wednesday. It was previously rolled out in multiple markets in Latin America.
While Netflix won’t say when paid sharing will come to other countries, some version of the plan is expected to be introduced in the U.S. in the next few weeks. Around one-third of Netflix's subscribers live in the U.S. and Canada.
Netflix has more than 231 million paid subscribers in 190 countries. The Los Gatos, California-based company estimates that 100 million households are currently sharing their accounts with others, which impacts the company’s ability to invest in new programming.
“We’ve always made it easy for people who live together to share their Netflix account with features like profiles and multiple streams," the company said in a blog post Wednesday. “While these have been hugely popular, they’ve also created confusion about when and how you can share Netflix."
Starting Wednesday, Netflix said it will allow standard and premium subscribers in Canada, Spain, New Zealand and Portugal to set up an extra account for up to two people they don’t live with for an extra monthly fee. The monthly fee varies by country; in Canada, it’s 7.99 Canadian dollars, while in Portugal it’s 3.99 euros.
Netflix said it will also allow people who have been borrowing accounts to transfer their viewing history and other preferences to a new, paid subscription.
Netflix didn’t say what actions it will take if subscribers continue to share accounts outside their household. In a conference call with investors in January, Netflix co-CEO Greg Peters said the company is trying to be thoughtful and gradual in its rollout.
“It’s worth noting that this will not be a universally popular move, so there will current members that are unhappy with this move. We’ll see a bit of a cancel reaction to that,” he said. “We think of this as similar to what we see when we raise prices.”
Additional reporting by Associated Press