how will netflix know who is in your household
Tuesday, May 23, 2023
how will netflix know who is in your household
During this March quarter, Netflix lost more than 200,000 subscribers. Almost immediately, its shares began to fall. Then, from April to July of that year, it lost another million subscribers as more and more people left the service. That's when the streaming giant, after a long reign, realized that they were facing an uphill battle to retain their crown.
Competitors are challenging its dominance and price increases are taking their toll. It's a big change for Netflix after years of seemingly nonstop growth, as it has revolutionized the way people around the world consume entertainment content - similarly fierce competition from Apple. TV, HBO Max, Amazon Prime and Disney+.
From being a disruptor to making video rental stores like Blockbuster redundant, Netflix has quickly become a disruptor. A return to pre-pandemic routines has highlighted Netflix's struggle to attract new subscribers — and maintain loyalty among existing members, largely due to the rising cost of living. get people to cut spending.
So much so that in 2022, Netflix decided it was time to tighten the company's password-sharing rules. The streaming giant even pointed out that out of 215 million premium accounts, around 100 million share passwords with someone outside of their household.
How will the new crackdown on password sharing affect regular Netflix users?
The "widespread" crackdown on password sharing that began in 2022 began this week. The company tested the "paid sharing" plan in several countries earlier this year, including Canada, New Zealand, Portugal and Spain. According to a Kantar study investigating the streaming habits of households, Netflix offered a monthly fee of €5.99 to users in Spain who shared their login information with a other households; there has been a drop in the number of users by more than a million people. Of which, 2/3 are using other people's passwords.
To this, during an earnings call last month, Netflix said it saw "a cancellation reaction in every market as we reported" on the premium stock option, but then saw " increase in sales and acquisitions". In Canada, where Netflix says is a reliable predictor for the US, its paid member base is larger than it was before the launch of the paid sharing feature, the streaming giant for know.
"Revenue growth accelerated and is now faster in the US," Netflix said on the earnings call. Fast-forward to this week, Netflix announced that it will be expanding its password-sharing crackdown to the US, UK, and the rest of the world. "Netflix accounts are for one household use. Everyone living in that household can use Netflix wherever they are - at home, on the go, on vacation - and take advantage of new features like Profile Transfer and Device and Access Management," he said.
What is the Netflix family?
Netflix accounts are shared among people living together in the same household. People outside of your household need a subscription to watch Netflix. In short, sharing your Netflix password with someone who doesn't live with it will cost you an extra $7.99 per month in the US, £4.99 in the UK and RM13 in Malaysia to add another user to your account.
'The Netflix family is the collection of internet-connected devices in the primary location where you watch Netflix. A Netflix household can be set up using a TV device. All other devices using your Netflix account on the same internet connection as this TV automatically become part of your Netflix family,” the streaming giant said.
Netflix also notes that it detects devices in a Netflix household using information such as IP address, device ID, and account activity "to determine if a device is connected to the account. whether your account is part of the Netflix household." We do not collect GPS data to determine the exact physical location of your device.