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Update: Netflix Retreats from Password Sharing Rules (For Now)

By iPad Pete Leave a Comment

Netflix Password Sharing Rules
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Netflix has recently decided to pull back on its plans to implement measures against password sharing.

Following an outcry from subscribers, the streaming giant removed information regarding the new rules from their official website earlier this week.

This update comes after reports that Netflix had proposed new regulations that would block devices used outside of the primary Netflix user’s home unless they verified access every month.

Read on to learn more about what Netflix is doing to combat password sharing.

Subscriber Outcry Against New Rules

It appears that one of the most debated policy changes from Netflix may not happen. For now.

Netflix recently removed the details of its plan to prevent password sharing from its official website, indicating a shift in strategy.

The removed rules had specified that any devices outside of the home of the primary Netflix subscriber would be blocked unless they verified their access every month.

Subscribers overwhelmingly opposed the proposal, expressing a range of living circumstances in which the new rules would be impractical. 

Updated Information from Netflix

The streaming giant has instead decided to focus its attention on making it easier for the main account holder to manage their users and devices. However, little information is available as of yet.

According to a Netflix representative, these newly implemented regulations are only currently applicable in select countries. Plus, should any U.S. revisions be necessary, they will first be announced to subscribers.

For a brief period, information about Chile, Costa Rica, and Peru was shared in other countries in Netflix’s help center. However, Netflix has since updated its website.

The Challenge of Increasing Prices

While the full extent of measures to end password sharing is not yet known, past reports have indicated that tracking I.P. addresses, login locations, and account activity could all eventually be used for U.S. subscribers.

It’s a strategy that promises to end unauthorized access in the near future.

Former CEO Ted Sarandos explained that making consumers accept a price increase is not easy. But Netflix needs to prove to customers that this change benefits them.

An additional strategy that has been proposed is to allow subscribers to pay extra for password-sharing capabilities. 

Netflix’s Future Plans Uncertain

Some reports had speculated that the company loses up to $1.62 billion each year because users share passwords.

The future of Netflix password-sharing rules in the U.S. remains uncertain.

For now, the company has backed down from the previously reported rules and has yet to outline any new measures against password sharing.

However, alternative options for borrowers and sharers could be expected if Netflix continues to look for ways to combat unauthorized account sharing.

So, keep an eye on any new policy changes from Netflix.

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