Highlights

• Netflix’s password sharing crackdown has begun in India and it aims to tackle unauthorised access of one account by multiple users.
• Stricter security measures are going to be implemented to detect suspicious login patterns for devices that are outside a set household.
• The limit on simultaneous streaming devices will still apply in India as per the subscription plan.
• Similar practices have already been implemented by Netflix in the US market and surprisingly it has seen a rise in subscriber growth

Undoubtedly, Netflix, the OTT giant, has revolutionised the consumption of video content. With an extensive collection of movies, TV shows, and original content, all just a click away, it has rightfully earned its reputation as a pioneering platform in the world of online streaming.

However, with the rise of several new players in the OTT industry, such as Amazon, HBO, Disney and more, Netflix’s market share is dwindling.

Add to that a very big issue that has persistently challenged the streaming giant is password sharing.

With multiple users often sharing a single account, Netflix basically is faced with significant revenue losses that are further making it lose ground on its competitors.

Taking a bold stance, the company announced a sweeping password sharing crackdown that commenced in May with the United States.

Many users thought that it would be the end of Netflix and that its subscribers would move to other platforms rather than paying for the service.

The effect has been the opposite with Netflix announcing that it gained a whopping 5.9 million subscribers in the second quarter of 2023.

It would appear that users are now willing to shell out money and get a Netflix subscription rather than moving towards the competition.
Now the American streaming giant’s password crackdown shenanigans are coming to India as well.

Let’s explore the implications of this move by Netflix, its potential impact on users, and the broader industry implications it may bring.

What will Netflix’s password crackdown entail?

It used to be extremely easy for several users to log into one account if they knew the password. Netflix is now going to limit it to one household only.

Anyone trying to log in from outside the registered household will not be given access to the Netflix account.

The company said on its website “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.”

So, what exactly defines a household and how will members be able to log on to Netflix when they are outside?

Basically, Netflix will be using the users’ IP address, account activity and other identifiers to know if the device you are using to log in is from the same household.

Once it has registered the number of users in a particular household, these members are free to access the service wherever they wish.

Registering for Netflix Household

• The first step would be to register a Netflix Household. To do this go the Netflix TV app and go the ‘Get Help’ tab. You should see ‘Manage Netflix Household’ option. Click on it.
• After that you will be asked for a confirmation if the TV you are currently operating is in your Netflix Household
• A verification will then go to your registered email or mobile number with a link that contains further instructions.
• Upon clicking this link Netflix will take you to a web page which shows all devices that are currently connected to your home Wi-Fi network.
• After you click confirm, all devices that are connected to your Wi-Fi will be registered as household devices. You can carry these devices outside your home and log out/log in with ease. No other device will be able to connect on the same account.
• Users who try to access an account but are not registered to a household will get a message that will tell them to create a new account.

What could this mean for the Indian market?

The significance of this step, at least for India remains to be seen. Netflix is the world’s largest OTT platform, in terms of subscribers, but in India it occupies a very small percentage of the total market.

Local players like Disney+ Hotstar, Sony LIV, and now recently Jio Cinema have garnered considerably more subscriber numbers.
However, if the US market trend is anything to go by, Netflix’s Indian subscribers may start to grow gradually.

The company has also invested a lot on original content in several Indian languages, which may work in favour of increasing user growth.

The far-reaching effects of Netflix’s password crackdown in India should become clear in the company’s earnings report for the upcoming quarter.

FAQs

1) Why is Netflix cracking down on password sharing?

Ans) Netflix has observed a significant impact on its revenue due to password sharing. By enforcing stricter measures, the company aims to protect the interests of paying subscribers and maintain the sustainability of its platform.

2) What actions will Netflix take against accounts found sharing passwords?

Ans) Depending on the severity and frequency of password sharing, Netflix may take different actions. This could range from a warning notification to temporary suspension of the account or even permanent termination.

3) Is there a limit to the number of devices I can use with my Netflix account?

Ans) Yes, Netflix imposes a limit on the number of devices that can be simultaneously streaming from a single account, depending on the subscription plan you choose.

4) How many accounts can be registered on a Netflix Household?

Ans) As per Netflix, up to five members can be added to the Netflix Household and this also includes the owner. Any more and Netflix will want you to delete at least household member to register the new one.

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