In-Depth Analysis: How Netflix India Plans to Track Password Sharing by Users

New Delhi: Netflix has implemented a two-pronged approach to boost revenue, involving the introduction of a subscription tier with ads and a firm stance against password sharing. Today, the video streaming pioneer sent emails to its Indian subscribers, requesting them not to share their passwords with individuals outside their households, a practice commonly observed in India.

In their official release, Netflix clarified that a single account is intended for use by a single household. All members residing in that household can access Netflix from various locations, such as home, while traveling, or during holidays. Additionally, they can enjoy new functionalities like Transfer Profile and Manage Access and Devices.

At the beginning of this year, Netflix disclosed that more than 100 million households were engaged in sharing accounts on their platform.

How does Netflix plan to implement or enforce this policy?

After declaring a crackdown on account sharing worldwide, Netflix will enforce a policy that permits access to a particular account only for users on the same internet connection. Individuals not considered part of the “Netflix Household” will be restricted from accessing the content.

As per The Washington Post, individuals currently using a borrowed account will be automatically logged out and will receive instructions on creating a new account instead.

The company stated that it will utilize data like IP addresses, device IDs, and account activity to ascertain whether a device belongs to a household.

According to a Netflix spokesperson, the platform will refrain from utilizing GPS data of its users.

What are the available options for users at the moment?

Netflix has urged its subscribers to check the devices currently signed into their accounts. In the email, the company advised users to sign out any devices that should not have access and to consider changing their passwords.

The company also clarified that if an individual is sharing their password with someone, they will now need to move that person to a new account, and the person being transferred will be required to purchase a new subscription plan.

Netflix India now offers four monthly subscription plans: a mobile-only plan for 149 rupees, a basic plan for 199 rupees, a standard plan for 499 rupees, and a premium tier for 699 rupees.

Users with the premium subscription can watch content on up to four devices at the same time.

How has the move been received?

Netflix has been rapidly adding members since it declared a crackdown on password sharing, and has already added 6 million new accounts internationally.

The increase in subscribers occurred as the US entertainment sector was beset by a potentially catastrophic writers and actors strike, but analysts think Netflix is better positioned than its competitors to weather the storm.

“Let’s face it, password protection works,” Louis Navellier, chief investment officer at Navellier and Associates, said of Netflix.