Streaming platform Netflix has started the process of cracking down on password sharing in South Africa. In the near future, it will no longer allow users to add more members to accounts at a reduced fee.
Information about password sharing was included and shared in Netflix’s letter to shareholders as part of the Q2 2023 earnings results.
A passage from the letter speaking directly to it reads as follows: “Beginning today, we’ll start to address account sharing between households in almost all of our remaining countries.
“In these markets, we’re not offering an extra member option given that we’ve recently cut prices in a good number of these countries and penetration is still relatively low in many of them so we have plenty of runway without creating additional complexity.”
Netflix revealed its revenue had increased in each region where it started limiting accounts to single households, with new sign-ups exceeding cancellations.
“In May, we expanded paid sharing to over 100 countries, which account for over 80% of our revenue,” said Netflix.
“The cancel reaction was low, and while we’re still in the early stages of monetisation, we’re seeing healthy conversion of borrower households into full-paying Netflix memberships as well as the uptake of our extra member feature.”
The new policy has helped the streaming service add 5.9 million paying customers between April 2023 and June 2023.
To support the password crackdown, Netflix is currently using a combination of IP addresses, device IDs, and account activity to create a primary household location.
If it detects that the account is used in another location, it will send a notification to the user, like the one below, asking them to set their primary location.
Netflix said it would begin to address account sharing between households in almost all the countries that do not yet have the policy in place. The process started on Wednesday, July 19.
Also Read: Resurgent Netflix adds 2.4-million subscribers in three months
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