Streaming giant Netflix has begun cracking down on what it describes as rampant password sharing in India, after doing this in other geographies. For a company that tweeted five years ago that ‘Love is sharing a password’, the anti-sharing initiative has attracted widespread attention. Viveat Susan Pinto examines how it plans to monitor sharing and how users will be affected
What is password sharing?
Simply put, password sharing is where users share their login information with friends and relatives who access the service outside the former’s homes. In other words, multiple people view the video-on-demand service through one account, paid for by one individual.
This practice has been common with Netflix users across the globe, including in India, to watch movies and shows, prompting the streaming giant to take measures to curb it. The company reasons that their base of paid subscribers would grow if there are curbs on users when it comes to sharing their passwords outside their home networks (or households). In other words, those wishing to view the over-the-top service will have to buy a new subscription if they are outside a “Netflix Household”.
Netflix Household
A Netflix Household is the user’s devices with the same active Netflix account, connected to the internet at the main place he or she uses the service. To set up a Netflix Household, account-holders must use the TV on which they watch Netflix the most. The devices using the same internet connection as the TV automatically become a part of the user’s Netflix Household once it is set up.
You must sign in to your account using the TV connected to your home internet. Then, open the menu on the home screen and select ‘Get Help’ and then ‘Manage Netflix Household’. Next, click either on ‘Confirm Netflix Household’ or ‘Update My Netflix Household’. Next, choose between the ‘send e-mail’ and the ‘send text’ options. A link for verification will be sent to the e-mail address or phone number registered. Click on Yes, This Was Me (link expires in 15 minutes). Then choose Confirm Netflix Household or Update Netflix Household to continue.
Tracking
Netflix tracks IP addresses, device IDs, and account activity to determine whether a device signed into a user’s account is part of her Household. It does not collect GPS data to determine the precise physical location of devices. Netflix says that users can share an account under one ‘household’. This means, one Netflix account can be used on multiple devices, provided they are under one roof.
If a user wants to add a friend to her Netflix account…
Users first must check who all are logged in to their account by visiting security and privacy settings of their Netflix account and selecting the ‘Manage access and devices’ option. If not, the account can be suspended. Users must sign out of devices that ‘should not have access’ and change passwords. In case someone outside their household is using Netflix, the profile can be transferred to a new account for which they will have to pay for and change the password.
What are the implications for India?
Netflix’s subscribers in the country are estimated to be 6-8 million, according to industry experts, much lower than Amazon Prime’s estimated 20 million subscribers and Disney+ Hotstar’s 52.9 million subscribers.
By curbing the practice of sharing passwords among friends and relatives, Netflix hopes to increase paid subscribers substantially in India, a market it considers as key for its growth.
The streaming giant had already cut the price of its service in India by 20-60% in December 2021, which had helped the company grow its engagement in the country by nearly 30% year-on-year, while revenue growth increased 24% in 2022 versus 19% in 2021, it had said in April.
The streaming giant’s mobile-only plan, earlier priced at Rs 199 per month, now costs Rs 149. Similarly, the basic plan allowing access to all content on any one device is priced at Rs 199 per month versus Rs 499 earlier.
In contrast, Amazon Prime Video and Disney+ Hotstar have priced their monthly plans at (starting price) Rs 299 per month.
The streaming service, which is present in 190 countries, has a large library, of 5,591 titles, as per SurfShark.