Netflix Ends Password Sharing in India: Here's How It Will Work

Ending password sharing in India, Netflix said only members of a single household will be able to use one account.

Streaming service Netflix announced on Thursday, 20 July, that it has ended password sharing in India, adding that only members of a single household will be able to use one account.

(Photo: iStock)

Streaming service Netflix announced on Thursday, 20 July, that it has ended password sharing in India, adding that only members of a single household will be able to use one account.

"Starting today, we will be sending this email to members who are sharing Netflix outside their household in India. A Netflix account is for use by one household. Everyone living in that household can use Netflix wherever they are – at home, on the go, on holiday – and take advantage of new features like Transfer Profile and Manage Access and Devices," the platform said in a statement.

"We recognise that our members have many entertainment choices. It is why we continue to invest heavily in a wide variety of new films and TV shows – so whatever your taste, mood or language and whoever you are watching with, there is always something satisfying to watch on Netflix," it added.

This comes amid a global crackdown on password sharing, plans for which were initially announced by Netflix in May to stop people from sharing their passwords with people beyond their immediate family.

After Netflix Co-founder Reed Hastings stepped down as CEO earlier this year, Greg Peters, the new co-CEO, had confirmed that the majority of subscribers who use the service but do not pay for it (thanks to password sharing) will no longer be able to do so in the near future.

A Wall Street Journal article reported that researchers inside Netflix identified password sharing as a major problem eating into subscriptions as early as 2019.

But how exactly does the streaming service plan to stop users from sharing their password? Read on.

How Will Password Sharing Become Difficult?

You can still share passwords, but only with people who reside in the same household as you. And for that, it wants users to confirm that they share the same household or else buy their own subscription.

The main hurdle that Netflix will place in front of password sharers is mandatory device verification when phones, computers, and streaming devices are logged into an account that isn’t the primary user’s home network.

For instance, when someone signs into your account from a device that is not associated with your Netflix household (people who live in the same location as the account owner) or if your account is accessed persistently from a location outside of your household, the service might verify that device before it can be used to watch Netflix.

How Will a Device be Verified?

Netflix will send an email or SMS to the primary account holder with a four-digit verification code which they will have 15 minutes to enter before it expires, according to the updated FAQ.

How Will Netflix Detect Devices Within a Household?

The streaming service provider said it will utilise IP addresses, device IDs, and account activity in order to determine which devices are part of the same household and which are not.

Will Netflix Charge Users for Sharing Their Account?

While Netflix has announced an end to password sharing, it has not yet specified whether it will charge users for sharing their password with people beyond their immediate family.

What Happens While Travelling or Accessing the Platform from Another Location?

If you are travelling or live between different homes and are the primary account owner (or live with them), you need not verify your device to watch Netflix.

If you are away from the Netflix household for an extended period of time, you may be occasionally asked to verify your device.

How Many Devices Will Netflix Let You Use Simultaneously?

It all depends on which plan you are signed up for. For instance, in India, the basic Netflix mobile plan costs Rs 149 per month, while the basic plan costs Rs 199 per month. Both plans support one device at a time, though the mobile plan only works on a smartphone or tablet. The basic supports streaming in HD resolution.

There are two more plans that the service offers. Its standard plan supports two devices and users can stream content in full-HD resolution. The plan costs Rs 499 per month. The top-tier premium plan costs Rs 649 per month and lets users watch content in Ultra-HD resolution.

It has clearly stated that people who do not live in your household would need to use their own accounts to watch shows and movies.

But Why is Netflix Cracking Down on Password Sharing?

In the first half of 2022, the streaming service failed to add new subscribers. The company also launched an ad-supported plan, but the growth is slow. In fact, according to a report by Forbes, Netflix lost nearly a million subscribers between April and July last year.

In a letter to shareholders last year year, Netflix said that cracking down on password sharing would be a “big opportunity” for revenue growth going forward.

A report by Reuters citing Refinitiv claimed the company's revenue is expected to have risen just 1.7 per cent to $7.84 billion in the October-December quarter, the lowest since it went public in 2002.

It’s a stark turnaround for a company that once tweeted, “Love is sharing a password.”