Source: Forbes
Source: Forbes

Some time ago Netflix mentioned its plans to end password-sharing. This was a common practice where one individual would subscribe to the family plan that allows for up to 4 simultaneous screens, and would simply share with friends and family, whether they were in the same house or not.

Netflix believes this is why they’re losing revenue, so they’re taking measures to end it for good.

A few regions in South and Latin America have already started to see the new feature rolling out, though it’s still not in effect in the US.

The new system detects “homes” based on the user’s IP address. If a new login is detected from a different IP address, access is allowed for two weeks, but after that time has expired, the owner of the account has to pay an extra fee on top of their regular subscription for that other “home” to resume access. The price of this fee seems to be around $2.99.

This information has been shared on their official blog.

Netflix has since clarified that accessing the streaming service from your mobile device outside of your home isn’t taken into consideration for this system, meaning that will still be possible without the extra fee.

However, for those that used VPNs in order to change their IP address and access Netflix catalogs from other regions, it seems that will no longer be possible.

The system will also warn the account owner before charging this fee, and only the account owner can authorize the transaction.

Source: Rest of World
Source: Rest of World

Netflix has been struggling with a wave of bad faith surrounding the company. Many competing streaming services have risen to fight for territory and Netflix is not really putting out the best in terms of quality, while the cost for the subscription has gone up several times in recent memory.

On top of their recent war on password-sharing, they are also working with Microsoft to add a new cheaper subscription plan supported by ads.

From a business standpoint, it makes perfect sense and many have pointed out that simply paying for the $2.99 fee on a friend's account, for example, is cheaper than subscribing to a full plan yourself, which can be seen as a benefit.

It’s also worth noting that, despite the negativity surrounding this change, most other streaming services competing with Netflix (such as Disney+, HBO Max, and Prime Video) also do not allow for password-sharing outside of the same household.

Notably, a single Netflix account can be shared with up to five individuals, only now Netflix won’t mind as long as those people are also being paid for.

Netflix claims there are 100 million households “freeloading” with password-sharing. They confirmed that the feature should roll out in all regions starting next year.