Netflix announced today that it began imposing restrictions on password sharing in the United States.
Netflix reiterates in the notice that “one Netflix account is intended for use by one household” and that all users in a household can stream everywhere.
The second part of the notice is not entirely accurate, as Netflix already has restrictions on simultaneous access to content.
The main goal of the company is to "collect" those who share their passwords outside the family. Friends who pay for one bill together, families who let their college-age kids watch Netflix using the same account, will be affected by the decision.
The message Netflix sends informs households of the new password sharing restrictions.
The first two sentences explain that a Netflix account is only for members of a household, but that it is possible to watch Netflix while traveling.
Netflix mentions how customers can manage devices and that they can check if there are any unauthorized devices using their account.
The company then lists two options for customers who want to share Netflix content with others outside of the primary family.
Customers can either purchase an additional member, which costs $7,99 in the United States, or use the profile transfer option to transfer an existing Netflix profile to a brand new profile by creating a new account and paying a fee for this account.
Netflix assigns a primary location to each account to determine access. The company hasn't disclosed details about how it determines this, but IP addresses and other information provided by customers' devices do reveal location information to the company.
Netflix's ban on password sharing will reduce the number of subscribers, at least initially. In Spain, Netflix has lost around 1 million subscribers since implementing the same restrictions.
The company hopes that some of these customers will return after a while.