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Tech Matters: Netflix is changing – What we know

By Leslie Meredith - Special to the Standard-Examiner | Feb 8, 2023

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Leslie Meredith

We knew the end of password sharing would happen this year, but we didn’t know exactly when or how it would work. Last week, Netflix posted a change to its sharing policy but has subsequently said that it was a mistake and removed the text. However, the post may shed light on how Netflix plans to crackdown on password sharing for about 100 million households, something it promised it would do to allow it to invest more in content.

There are two parts to restricting account sharing: location, which is what this new information addresses, and the number of screens allowed per account, which Netflix has already tackled with its relatively new pricing plans.

To determine location, Netflix will have to determine which account is the primary one when there are multiple households using the same account. The mechanism involves demonstrating your primary location over time. “To ensure uninterrupted access to Netflix, connect to the Wi-Fi at your primary location, open the Netflix app or website, and watch something at least once every 31 days. This creates a trusted device so you can watch Netflix, even when you’re away from your primary location,” the company wrote in the updated Help Center document.

If you’re traveling, you’ll be able to watch Netflix simply by logging into your account. But if you’re away for an “extended period of time,” Netflix said, “your device may be blocked from watching Netflix.” The solution to this is requesting a “temporary access code to continue watching,” Netflix concluded. We may see this return as we approach the end of the month when Netflix is likely to put the new procedure in place.

If you’ve had your account for more than a year, you may not be aware that Netflix changed its pricing tiers, which include a specific number of devices per tier that could stream Netflix at any one time. Other streaming services already do this. For instance, Hulu limits streaming to two screens, so if a third screen tries to access Hulu, it will be blocked. The company already limits by location as well. With Hulu + Live TV, the service can be streamed at only one location on a maximum of two screens.

Following Hulu’s pricing model, Netflix introduced last November a “Basic with ads” option at the bottom for $6.99 that allows viewing on one device at 720p (lower quality compared with 1080p) and does not allow downloads. Up a step is Basic, which like the “with ads” tier is limited to one device but adds full HD (1080p) with no ads and the ability to download movies and shows. This tier runs $9.99 per month. Next is Standard at $15.49 a month and allows an account to be used on two devices, including downloading to two devices. At the top is Premium at a hefty $19.99 a month that includes UltraHD streaming (4K), enhanced sound on some popular movies and shows, watching on four devices and downloading content to six devices.

We know those are the pricing tiers, but all we know for sure about sharing accounts outside one’s household is that password sharing will be made unavailable early this year. In its earnings report released at the end of January, Netflix said this would happen “likely before March,” and “it will restrict simultaneous use of Netflix accounts beyond households.” The company said it will focus on pushing its paid sharing option as well as its lower-priced subscription plan with ads.

Netflix is already encouraging members to move users outside their physical households to a new account. The company said these new account holders will be able to retain their account information such as shows watched and recommendations. But we have no details on its “paid sharing option” that we could see as early as the end of this month.

Netflix ran market tests in several Latin American countries, including Costa Rica where it charged $2.99 to add an extra member. The option was limited to those subscribed to the Standard and Premium plans who could add a maximum of two people they didn’t live with. That might make sense for a child away at school, but you may want to push any others off the virtual sofa.

Leslie Meredith has been writing about technology for more than a decade. As a mom of four, value, usefulness, and online safety take priority. Have a question? Email Leslie at asklesliemeredith@gmail.com.

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