Brace yourself, your Netflix sharing “F.R.I.E.N.D.S” may soon turn into “The Best of Enemies”

Are you one of the 100 million Netflix users who share their password with friends and family? If so, you might want to prepare yourself for some changes.
Netflix recently conducted a pilot program in Chile and Costa Rica to crack down on password sharing and has now started rolling out similar measures in Canada, New Zealand, Portugal, and Spain. It’s only a matter of time before the policy is rolled out globally.

New Rules:

You will only be able to add up to two additional users at an additional premium cost based on your geographic location.
To be considered as living in the same household, the device must use the primary account’s Wi-Fi connection once a month.

Key Considerations:

According to Netflix, 40% of their current users share their passwords, equating to approximately 100 million accounts.
In the past, Netflix focused on user acquisition, but now that they have reached a large user base, they aim to strengthen their system and increase revenue.

Challenges:

1) The definition of password sharing will be closely scrutinised, especially in edge cases like travellers and those with limited access to Wi-Fi.
2) One of the main motivations for password sharing was affordability, which this new policy will potentially hinder.

Will this change in policy trigger a similar response from other streaming services like Hot-star, Sony LIV, etc.? What alternative solutions can competitors offer to discourage password sharing?

Please find the official Netflix blog link in the Comment section.