Netflix, a video streaming service, has begun enforcing restrictions on password sharing across its markets including Africa.
The platform is available in Algeria, Libya, Tunisia, Egypt, Morocco, and South Africa. It is also available in Kenya and Nigeria.
The company is implementing its paid-sharing service in its markets to turn service borrower household accounts into full-paying Netflix memberships.
This is according to a statement shared with shareholders in the company’s second-quarter results.
Netflix in May cracked down on password sharing for accounts in the US, UK and more than 100 other countries.
“The cancel reaction was low and while we’re still in the early stages of monetisation, we’re seeing healthy conversion of borrower households into full paying Netflix memberships, as well as the uptake of our extra member feature.”
Since then, the company says the crackdown on password sharing helped it add nearly 6 million subscribers in three months.
The additional membership option allows Netflix users to add an extra member to the main account for an extra fee.
“Beginning today, we’ll start to address account sharing between households in almost all of our remaining countries,” says Netflix.
“In these markets, we’re not offering an extra member option, given that we’ve recently cut prices in a good number of these countries (for example, Indonesia, Croatia, Kenya and India) and penetration is still relatively low in many of them, so we have plenty of runway without creating additional complexity.”
In the reporting period, Netflix says its revenue grew to $8.19 billion, while the projected revenue was $8.30 billion.
How Netflix Detects Password Sharing
Netflix is implementing new measures to ensure that only users on the same internet connection can access a specific account.
Those who are not part of the “Netflix Household” will be unable to view content and will be prompted to create their own account.
To determine if a device is associated with a particular household, Netflix will use information such as IP addresses, device IDs, and account activity.
However, the company stated that it will not use GPS data for this purpose.
“When a device outside of your household signs in to an account or is used persistently, we may ask you to verify that device before it can be used to watch Netflix or switch your Netflix household,” the company said.
