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Netflix Introduces ‘Add a Home’ Plan to Charge for Shared Accounts

Netflix has made a bold move by introducing the “Add a Home” plan. This plan attempts to limit password sharing and restrict accounts to single household use.

This comes at a time as the streaming giant looks to control rampant account sharing, as it claims this has significantly curtailed its ability to invest in content and innovate for its subscribers.

Addressing Widespread Account Sharing

For many Netflix users, sharing accounts between households during the past ten years became the norm and a seemingly harmless way to budget or bond with loved ones. Nevertheless, Netflix’s business model seemingly gets undermined as the data suggests that over 100 million households globally have been sharing accounts. To counter this, Netflix has started to limit the sharing of standard accounts to within a single household and implemented systems to enforce this restriction.

How the “Add a Home” Plan Works

The new policy revolves around the Netflix Household, which refers to a group of devices using the internet at a primary location where Netflix viewing occurs. As a general rule, accounts come linked with a primary household. Under the new rules, only users within the specified household address can access the account using multiple devices, both in the house or away.

For users sitting outside the desired household and willing to share an account, Netflix is now providing the “Add a Home” option, which was earlier trialled in some countries. This feature allows account holders on the Standard and Premium plans to pay an extra monthly fee to extend access outside the primary household. Pricing is inconsistent across locations. In most locations, the extra charging fee is 7 to 9 dollars per month per extra house or member.

How Netflix Is Enforcing the Policy

Netflix’s newly integrated systems keep track of account usage and location usage at a granular level. Devices connecting from locations beyond the primary household may face prompts and verification steps asking users to confirm their right to access the account. If consistent out-of-location usage is detected, Netflix might suggest adding a new primary household for an additional fee, transferring a profile, or restricting access.

Account holders can adjust the registered household from the Netflix application on their television and receive an email or SMS notification upon confirmation. These actions aim to uphold the integrity of the payment system while attempting to minimise unfair device positioning relocations.

New Pricing – Home Plan

The Basic plan allows members to add one extra home; the Standard plan allows up to two more homes; and the Premium plan allows up to three additional homes. Users can view it from outside the home on their mobile devices, laptops, or tablets.

Does Netflix’s newly implemented policy also apply to users in India?

As was just indicated, Netflix intends to put a stop to the practice of sharing passwords, which is something that is already being done in Peru, Chile, and Costa Rica. This does not necessarily mean that the new policy of charging extra fees to customers will not be implemented in other nations, including India.

The corporation is only doing trials of this in a few locations to better understand how well it will work for them before expanding it to more nations. There is no information available as of this moment on when exactly this policy will be implemented in India. Therefore, Indian consumers may stop worrying for the time being.

Way Forward

The “Add a Home” strategy marks a defining moment for Netflix as it redefines account-sharing monetisation techniques across streaming services. Account-sharing as we know it has ceased to exist. Netflix subscribers are required to comply with the one-household limitation or incur added charges to share the streaming experience outside the household.

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