Netflix is putting an end to account sharing. Why does this generate additional costs for many users? And what exactly is not allowed?
Sharing passwords and user accounts among friends has been a thorn in Netflix’s side for years. The streaming service announced a while ago that it wanted to take action. After initial tests in South America last year, Netflix is now also getting serious in Germany. If you share your account with others who do not live in the same household, you will be asked to register as additional members – and ultimately pay more.
Why is Netflix introducing additional members?
Sure, the users should binge series hits like “Stranger Things”, “Wednesday” or “Bridgerton”. However, since many people share access to the streaming service with others, less money is poured into the Netflix coffers than one would like.
A few months ago, the provider announced in a financial report for the fourth quarter of 2022 that it wanted to introduce “paid sharing on a broader basis”. The company said that more than 100 million households worldwide tuned in without paying for it. This undermines the “long-term ability to invest in and improve Netflix.”
How times can change. About six years ago, the streaming service still romanticized the sharing of accounts. “Love is sharing a password,” reads one now almost legendary tweet from March 2017, which recently caused a lot of ridicule among users.
So was Netflix account sharing allowed before?
In fact, sharing across multiple households has not only been undesirable on Netflix for the past few years, it has actually been banned. The terms of service previously prohibited sharing accounts outside of your own household. The service has now adjusted the sub-item. Accordingly, users may not share access to the content with others who do not live in the same household, unless this is permitted by the corresponding subscription.
How much does Netflix cost me now?
The “standard” subscription with advertising and content in full HD quality is currently available for EUR 4.99 per month, a “basic” subscription without advertising – but only in HD – is EUR 7.99. The “standard” subscription without advertising already costs 12.99 euros and the “premium” version with UHD support 17.99 euros. An “additional membership” costs 4.99 euros per month.
Users of the “Standard” subscription can activate an additional household, those of a “Premium” subscription up to two more households. This is not possible with the other two subscription options. With additional members, the monthly costs can increase to around 28 euros.
What happens if I don’t book an additional member?
Since May 23, the streaming service has been emailing affected users in Germany and Austria. In this, Netflix asks customers to check who is using an account. The company refers to the additional member option as well as the possibility to transfer a profile to your own account – which has to be paid for separately.
Anyone who does not pay for an additional member and shares their account with others who do not live in the same household violates the terms of use. If the streaming service detects such a violation, Netflix can theoretically completely exclude customers. It is currently unclear how strictly the company will actually take action in this way.
What does Netflix see as a household and how is this verified?
As the service writes in its “Help Center”, all devices that users use in their home and are connected to the Internet there are counted as part of a Netflix household. For example, if a subscriber mainly looks on the television, the laptop or tablet is automatically counted as part of the household.
If other devices are now used that are located at a different location and are therefore connected to a different WLAN network, for example, the provider may ask you to verify them. This is to verify that it is an authorized device of a paying user – and not one of another viewer. According to the company, a mix of IP addresses, device IDs and account activity is used to verify that a device belongs to the household. However, no GPS data is recorded to determine an exact location.
Can I use Netflix on the go?
It should still be possible for users to stream Netflix on their own devices such as smartphones while on the move or on the TV in a hotel while on vacation. It is unclear how long or how often users can be in another location for the whole thing to function smoothly.
For frequent trips to the same place or a second home, the provider points out that customers should connect their devices to the internet once a month at their main location and open the app. This step should also be carried out at the other location. It remains to be seen how well the whole thing will work without interruption in the long term or whether it will cause problems for users.