From all 3 subscription plans that the Netflix platform offers, the Standard for 11.99 euros per month and the Premium for €15.99/month They offer the option to share an account on several devices, up to 2 in Standard and up to 4 in Premium. But as the VOD service reviews on its website, “only people who live with you can use your account”.
If you have a shared account with friends or family it is legal, although if it is not within the same house, it is not legal according to Netflix’s terms even if they are relatives with whom you share it.
End Netflix account sharing
According to the Pew Center for Internet and Technology, approximately 2 in 5 online adults have shared VOD platform account passwords with friends or family. And among the Millennial generation the figure is even higher: the 56% of online adults ages 18-29 have shared passwords.
According to another study, more than a quarter of video streaming services are used by multiple households. That includes that a family or a friend share the bill they pay outside the homero, less commonly, multiple households split the cost. And 16% of all households have at least one service that is paid for entirely by someone else, according to the Leichtman Research Group study. This digit it increases to 26% in the case of young people between 18 and 34 years of age.
Last 2019, at a conference on financial results, Netflix CPO Gregory K. Peters made it clear that they were studying how to end the practice to pay standard and Premium accounts between several and use them in different households. And it seems that 2 years later they have found it, because we are already seeing measures in this regard.
Last January, Netflix tested a new feature that, through a pop-up message, warns people who share your password and who don’t live with the password owner that they have to pay their own bill. They are apparently asking users to verify that they are the owner or a member who has direct access to the same password by asking them to enter a verification code.
This code is sent by text message or email, but the platform still offers the possibility to verify it later or simply ignore the message. Password sharing is estimated to cost streaming services several billion dollars a year in lost revenue.
New option: pay more to include another person
According to the newspaper Variety, Netflix will soon launch a test in three countries -Chile, Costa Rica and Peru- that will allow members who share their accounts with people outside their household to do so “easily and safely, also paying a little more”. , according to Chengyi Long, director of product innovation at Netflix. The new options will roll out in the coming weeks in all three countries (and may or may not expand beyond those markets). all three countries (and may or may not expand beyond those markets).
With the function “add an additional member”Netflix Standard and Premium plan members will be able to add subsidiary accounts for up to two people they don’t live with, each with their own profile, personalized recommendations, login and password, for less than the cost of a separate Netflix plan. The cost of the add-on is $2.99 for each person added, which is in addition to what you already pay per month for Netflix.
In the three test markets, Netflix will notify members who share their account away from home in the coming weeks of the new options. A member will be prompted to verify their account only if a device outside their home connects to the account; Netflix can then ask the user to verify the login from the device by sending a verification code.
Lost money from the company
As the platform reviews, this may remain in another test like last year’s, or it may be implemented. Sharing or stealing passwords for streaming services cost an estimated $2.5 billion in revenue in 2019, according to the most recent data from the research firm Park Associates. It is expected that that figure rises to nearly $3.5 billion in 2024.
that can be a tiny fraction of the $119.69 billion eMarketer predicted people would spend on subscriptions of video only in the United States during the past 2021. But the growth of the subscribers is slowing and the costs are increasing. Will this pay more be integrated if you want to share the account with someone?