Industry News: Netflix Cracks Down on Account Sharing

We’ve all been there, looking at ways to cut back on expenses and what better way than sharing someone else’s Netflix account? After all, the probability of them using it at the same time as you are slim, and it offers you both a chance to half the price of a subscription whilst still staying up to date with the latest and greatest movies and series in the Netflix world.

If this sounds like you, you may be facing trouble accessing the shared account as Netflix cracks down on people sharing passwords.

As an expert in cheap TVs, we’ll explore Netflix’s recent actions against password sharing, discuss the reasons behind their crackdown, and provide examples of the measures they’ve taken, plus what you can expect if you share your account with others.

Why Is Netflix Cracking Down on Password Sharing?

Whether you sneakily pinch your parent’s subscription or have a friend going halves with your account, you may see no harm in sharing your budget to help both parties. However, with 232.5 million users worldwide as of 2023, Netflix has found this as a potential reason there was a decline in subscribers for the first time in a decade.

The main reason behind this crackdown is to increase revenue and reduce the loss of subscribers. By enforcing stricter rules on account sharing, Netflix aims to ensure that each user pays for their subscription, ultimately boosting the company’s revenue. As a result, users may find it more challenging to share their Netflix accounts with friends and family members from different households.

Investing In New Content

Netflix is going to spend $1 billion on content this year, and a substantial chunk of that money is going toward original programming. They have invested heavily in original content for years, but the company spent an estimated $12 billion on content last year. The streaming giant has already spent about half that amount this year on new shows and movies.

Most of Netflix’s original programming comes from outside its studios, but the company has invested heavily in creating its own movies and shows. In fact, Netflix spent $3 billion producing 1,000 hours of original content last year — about one-third of which was animated or children’s programming.

Cracking down on account sharing will encourage new subscriptions, which can go towards producing better and bigger Netflix shows and licenses to provide customers with even more variety of content.

Netflix New Prices

Along with the news of this password crackdown comes a new set of prices for your Netflix subscriptions. Back in March 2022, the subscription service released a brand-new choice for their packages, which for the first time, meant you could reduce your basic package by watching adverts.

The ad-based basic package stands at £4.99 and allows the use of two devices at once if you don’t mind sitting through a few adverts. This new package also prevents you from downloading content and provides limited access to Netflix’s extensive options of TV shows and movies. However, if you like watching Netflix on the go and find you can’t find your favourite TV shows, you may wish to consider their Ad-free basic package, which has seen a £1 rise in price from £5.99 to £6.99 and is only available on one device.

Other packages have also increased, with the Standard package coming to £10.99 and the Premium package starting at £15.99. Of course, if you have just taken advantage of our incredible 4K TV deals, you may wish to consider their Premium packages to make sure you are getting the best from 4K content.

What to Expect if You Share an Account

In March 2021, Netflix tested a new feature targeting password sharing. Some users reported receiving a notification asking them to verify their account by entering a code sent via email or text message. The message also told that users who don’t live with the account holder should create their own Netflix account. This test aimed to understand consumer behaviour and find ways to limit password sharing without negatively affecting the user experience.

While this feature was only a test, it highlights Netflix’s efforts to tackle password sharing. Customers who have been identified as sharing an account may have already received an email letting them know that they must either buy an extra user for £4.99 or request a new account with the other user’s email. If you haven’t yet, it won’t be long.

How Does Netflix Know?

As a Netflix user, you might wonder how the streaming giant knows if you share your password with friends or family members.

One of the main ways Netflix identifies account sharing is by analysing user behaviour, including watching habits and device usage patterns. For instance, if two users with different viewing preferences often access the same account, it could be a red flag.

IP addresses are also the biggest giveaway for password sharing. Each internet connection has a unique identifier which can provide data on the network being used. If the same account is being consistently used on two unique IP addresses, this will highlight that the account is being shared.

Does It Matter if I Use It on My Phone?

The main concern for customers was the restrictions of watching Netflix on the go from their account if they use it at home. Would Netflix prevent you from using your mobile data or public Wi-Fi to stream content? Luckily, the answer is no. At the end of the day, you still pay for your account and watching on the go is one of the advantages of Netflix. So, they won’t intend to penalise you for this.

However, if you regularly visit or use an IP address that isn’t mobile data and stream content, this could be a red flag. There have been suggestions that Netflix may require you to watch content from your primary household at least once a month, but with the stricter restrictions in place being reasonably new, it still needs to be confirmed. So, if you are considering our cheap smart TVs to reduce the need for external devices and are worrying about whether you can access your Netflix account, then there is no need.

With the many users worldwide, unless it’s obviously clear and several red flags have appeared on an account, there is no reason you can’t keep up with your favourite series and movies on the go.

Think Smarter for Your Streaming Needs

At Electronic World, we understand the importance of staying informed about the latest developments in the streaming industry. We hope this has provided valuable insights into Netflix’s efforts to prevent password sharing and how it may affect your viewing experience.

As a company that offers high-quality discount TVs, we encourage you to explore our extensive product range to enhance your streaming experience. If you’re considering upgrading your TV or need help making the right choice for your streaming needs, feel free to contact us or browse our blog for more information.

Let Electronic World be your trusted partner in creating the ultimate home entertainment setup. Happy streaming!

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