After getting quite a good response from seven different countries, Netflix is now extending its new password-sharing policy to U.S. markets by the 2nd quarter of 2023.
The new policy was first launched in Latin American counties such as Chile, Costa Rica, and Peru on 5th February for testing its new policy. The company was charging their users less fee for adding an extra member to their plan. On 8th February, the Company extended its new policy to Canada, Portugal, New Zealand, and Spain.
Netflix stated that the company had a huge loss due to people sharing their Netflix accounts. Over 100 million households worldwide were sharing their accounts, which was causing them from investing in new great films and web series.
What Is Netflix New Policy?
Netflix, in its new policy, said that “People who do not live in the same household will need to use their account to watch Netflix.” It further said that Netflix would ask for account verification if someone tries to log in from a device outside the household.
If a person outside the household tries to access Netflix on a new device or a device that is not connected to the home wifi, a popup will appear stating that the person first needs to verify before accessing the account. The person then has to enter a four-digit code within 15 minutes which will be sent to the account owner by Netflix.
If the person has been verified by Netflix, he will be able to access Netflix from anywhere, even while he is traveling or living between different households.
New Features Announced By Netflix.
Netflix announced five new features in its new update, which gives its members greater control over who can access their accounts.
The five features are as follows:
Set Primary Location: Netflix will help its members to set up this, So that anyone who lives in the household will be able to access Netflix easily.
Manage Account Access And Device: With Netflix’s new page “Manage Access and Devices page,” members can now easily manage access to their account.
Transfer profile: People can now transfer their profile easily to a new account ( which they are paying for ) by keeping their personalized recommendations, viewing history, My List, saved games, etc.
Watch while you travel: Members can continue enjoying Netflix on their devices or can log into new T.V. at hotel and holiday rentals.
Buy an extra member: Now, the members of Standard can add up to one extra member, and Premium plans can add up to two extra members. This feature is available in countries like Canada, New Zealand, Portugal, and Spain. Each extra member will get a profile, separate recommendations, new login, and a password. They would have to pay CAD 7.99 in Canada for adding an extra member, NZD 7.99 in New Zealand, 5.99 euros in Spain, and 3.99 euros in Portugal.
Results after Bringing New Password Sharing Policy.
When the policy was first released in Latin America, The Company saw a cancelation reaction in the market by the user. This caused their near-term growth. But as time passed by, many borrowers started to activate their accounts, and some of the existing members added extra members to their accounts. This increased company’s acquisition and revenue.
In February, Netflix started blocking devices that were detected being used by a person who is outside the account owner’s household after a certain time.
Netflix at first took a short-term financial hit by adding the new password-sharing policy, But the company stated that the policy is a good strategy for the long term. In Canada, after adding the new password-sharing policy, Netflix has more paid subscribers than before.
Netflix DVD Rental Services Coming to An End.
In 1997 Netflix was started as an online DVD purchase and rental service. It became very popular as a rental service after 1998; it has sold more than 5.2 billion DVDs since 1997. Netflix then launched its streaming service in 2007, after which stop its DVD rental service; but now, after 25 years, the company has announced that it will stop the rental DVD service from 29 September 2023 onwards completely because of less demand for rental DVDs in the market.
Also Read: 45 Best Movies And Shows To Watch On Netflix In 2023
