by Netflix (NFLX) has revealed the first details of its crackdown on password sharing.
According to the streaming giant’s help center, which updated its FAQ pages for countries currently in the midst of the crackdown (Chile, Costa Rica, and Peru), Netflix accounts will remain shareable but only within a household. (The US could be next in Q1.)
As a result, Netflix will require users to identify a “primary location” for all accounts that live within the same household. Users will need to log into their primary location’s home Wi-Fi at least once every 31 days to ensure their device is not locked out.
The company said it will use information such as IP addresses, device IDs and account activity to determine if a device logged into the account is connected to the primary location.
When someone logs into your account from a device that’s not part of your primary location, or if you persistently log into your account from another location, they’re likely to be blocked.
To work around this issue, the primary account holder will need to verify the device with a temporary code. Once verified, the traveling member can watch Netflix for seven consecutive days. It’s unclear if you can request more temporary codes after the 7-day period to avoid paying for an additional account.
Netflix warned in its quarterly letter to shareholders that it will step up its push to fight password sharing.
“Later in Q1, we expect to begin rolling out paid sharing more broadly. Today’s widespread account sharing (over 100 million households) undermines our long-term ability to invest in and improve Netflix, as well as build our business,” the company said.
Along with a crackdown on password sharing, Netflix will also rely on its new ad-supported tier to boost profitability, especially as competition within the streaming: time space escalates.”
Second The informationNetflix told advertisers it saw signups double for its advertising tier in January compared to December, a positive sign of subscriber momentum as the streamer looks to reinvigorate revenue.
Netflix reported net additions of 7.66 million in the fourth quarter, above the company forecast of 4.5 million amid a number of high-profile and record-breaking content releases, including “Glass Onion,” “Trolls,” “All Quiet on the Western Front”, “My Name is Vendetta” and “Wednesday”.
The company also announced that co-CEO and co-founder Reed Hastings would step down from his role at the helm of the company, with COO Greg Peters joining current Netflix co-CEO Ted Sarandos in that role. Hastings will now serve as executive chairman of the company.
Netflix stock has been in a slump in recent weeks, up about 55% over the past six months with an increase of about 20% so far in January, far outpacing the Nasdaq Composite’s 3% decline.
Alexandra is a Senior Entertainment and Media Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at [email protected]
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