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Netflix plans to end password sharing in early 2023

The streaming giant also announced that it will launch 'Nike Training Club' on December 30



Starting next year, the company plans to ask users who share accounts with others outside of their household to pay for the same, the report said.
Image Credit: Reuters

San Francisco: Streaming giant Netflix is reportedly planning to put an end to its password sharing feature in early 2023.

Previously, there were rumours about the end of password sharing, but the changes are set to officially go into effect next year, reports MacRumors.

Netflix has long been aware that password sharing is a problem that negatively affects its earnings, but the rise in subscriptions in 2020 led the company to avoid addressing the issue.

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Because of the revenue downfall this year and the platform's first subscriber loss in 10 years, Netflix CEO Reed Hastings decided it was time to take action on the issue.

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Starting next year, the company plans to ask users who share accounts with others outside of their household to pay for the same, the report said.

In October, the streaming giant had announced the 'Profile Transfer' feature to prevent password sharing that had been rolled out to all members globally.

Netflix also announced that it will launch the 'Nike Training Club' on December 30, 2022, with which users will be able to stream fitness content.

Sharing password may be illegal: IPO

Sharing passwords for streaming platforms such as Netflix and Amazon Prime Video is illegal in the United Kingdom, suggests the government agency – The Intellectual Property Office (IPO).

"There are a range of provisions in criminal and civil law which may be applicable in the case of password sharing where the intent is to allow a user to access copyright-protected works without payment," the IPO said.

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"These provisions may include breach of contractual terms, fraud or secondary copyright infringement, depending on the circumstances," the IPO guidelines stated.

Netflix, the world’s largest streaming service, constantly tests new features with users and it is unclear if the household verification requirement will be implemented more widely.

Netflix has been working on the issue for two years and conducting tests. In March, Netflix began charging users in Chile, Costa Rica and Peru an additional fee to share their accounts with up to two people. On April, the company said it plans to introduce the new charge for password sharing globally, within a year.

With inputs from ANI, Reuters

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