The competition in the field of streaming services is quite high and new players are appearing in the market. So there is a battle for the customer, but at the same time there is also the burning issue of account sharing. This is doubly true in the case of Netflix, as one of the largest providers. The platform has struggled with viewership in the past, so it's no surprise that it's trying to tackle one of the biggest ailments that abounds among users. At the same time, Netflix started fighting the sharing of account login data last year.
After testing the principles of preventing password sharing in several countries, Netflix tightened up its efforts a few months ago and expanded its efforts to countries such as Canada. It was obvious that unless there was some really massive backlash from customers, the plans would soon spread to the US and, by extension, other countries. Now it is confirmed. The onset of paid sharing in the States will therefore have to be expected already during the second quarter of this year. This informace comes from the letter to shareholders and talks about the wider implementation of this measure, which will affect not only the US, but also the remaining markets, as he stated The Hollywood Reporter. So it's not a question of if, but when this will reach us too.
And how does it actually work? It's no secret that Netflix tracks not only what users watch, but also from where. So the restriction is based on the location from where the viewer watches the content offered. Based on the identification of the IP address, users will be assigned a primary location and the account will thus allow access only to devices within a specific network. If you don't set the primary location yourself, Netflix will do it for you based on account activity.
Account usage outside of the primary location, and therefore sharing, will be subject to a fee beyond the payment for the selected subscription. Of course, this can be a problem for those who are often on the go or access the service from multiple locations. Under these conditions, account verification using a unique owner code will be required. Prices in different countries are different. On average, they are around 40% of what viewers pay under the Standard tariff. In the Czech Republic, this would mean an additional fee slightly exceeding 100 crowns, given that the price of the tariff in our country is currently 259 CZK.
The exact schedule is not yet known, but if we take into account the current procedure, the streaming giant will most likely not delay the introduction for long. If you were expecting a mass exodus of customers and subscribers to oppose this move, then you would be wrong, because at least for now it is not happening. Netflix even notes that instead of the arrival of pay-sharing hurting business, its subscriber base has actually increased in Canada since the program was introduced. With that country's revenue growth now outpacing the U.S., Netflix certainly has no business reason to change course in any way now.
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As an interesting aside, Netflix today also came with another sad news that symbolically ends an era. The company has announced that it will end its once iconic DVD rental service in September 2023, after more than 20 years. Of course, this move is completely understandable and has a rather nostalgic flavor.
