Netflix today announced an extension to its crackdown on password sharing, with the streaming service banning multi-home accounts in Canada, New Zealand, Spain and Portugal.
In these countries, people who share an account with people who don’t live with them have to pay for an “Additional Member”.
Prices are per person, with the option to add up to two additional people to an existing Netflix Standard or Premium plan. The additional price provides each person with a profile, personalized recommendations, username and password. Alternatively, people who currently share a Netflix account with someone outside their household can transfer a profile to a separate paid Netflix account.
Netflix will require customers to set up a primary location to ensure everyone living in the household can use the Netflix account. However, Netflix says subscribers will still be able to watch content while traveling. Netflix’s website has little information on how the trips work, and Netflix didn’t provide any details when asked. Part of the account sharing blocking process requires users to set a primary location, and in Canada, Netflix says that for people who have second homes or frequently travel elsewhere, the Netflix app must be open on a device mobile, while being connected to the Wi-Fi Network at the main site once a month.
This suggests that Netflix requires monthly check-ins to a primary location so the streaming service can be accessed when you’re away from home.
According to Netflix, more than 100 million households share accounts, which impacts its ability to invest in new TV shows and movies. The company says a Netflix account is for household use only, a rule the company first enforced last year.
Netflix has already tested restrictions on access to multi-household accounts in several Latin American countries and announced in a fourth quarter earnings release that it plans to expand enforcement of the rules against word sharing, happening in 2023.
Although Netflix’s Terms of Service have never specifically allowed for the sharing of passwords between households, Netflix has looked the other way for so long that the introduction of fees to offer account access to friends and the family is likely to anger some subscribers.
Netflix’s pricing doesn’t help either, with subscribers paying to watch on multiple devices. For example, with the Premium plan, Netflix offers 4K Ultra HD streaming and simultaneous viewing support on four devices, now with the restriction that all viewers must be in the same house.