Who will be affected?
The major change only applies to subscribers who share their passwords with other households.
A subscriber using the account for themselves, across multiple devices, will not be affected.
If someone is using the streaming service from a different location and they don’t own the account, they’ll be kicked off.
How will it work?
Questions have been raised about how Netflix can determine whether multiple people have access to a single account.
Devices used to access a Netflix account have an IP address. This also applies to any device with internet access, such as a computer or mobile phone.
Netflix will cross-reference the IP addresses and flag any IP addresses that don’t match those in the “primary household.”
What is a main household?
The person who created the account is called the main user.
They are required to set a primary location on their account.
You do this by setting up an account on a TV that is connected to the Internet via Wi-Fi.
The main user can connect multiple devices to one account on the same internet connection – this is called the ‘primary household’.
Anyone who tries to access the account from another internet connection, without verifying that they are the main user, will not be able to access the service.
What happens if you use the streaming service on multiple devices?
Australians using the account for themselves and watching the streaming service on multiple devices will not be affected.
Subscribers can still watch their favorite TV shows on the go, as long as the device, such as a cell phone or laptop, has been used to access the Netflix account at their home in the past month.
A subscriber must verify that they are the account holder if they attempt to watch on a device that has not previously been connected to the main household.
This includes things like a TV in an AirBNB.
How does Netflix know if you are the main user?
Netflix users are prompted to verify that they are the account holder when they log in to a new device.
Verification is sent via email, which the subscriber must open before they can log into their account.
What happens now?
Australian account holders will receive an email on Wednesday detailing the changes made to password sharing.
The email states that an account may only be used in one household.
What if I want to share an account with someone?
A new payment plan allows users to add an “additional member” to Standard or Premium plans for an additional $7.99 per month.
While this is certainly annoying for customers who share their accounts with others, it’s still a cheaper option than creating two separate accounts.
Why is Netflix cracking down on password sharing?
The global crackdown on password sharing comes after the streaming giant revealed that more than 100 million customers shared their accounts.
Netflix explained that this practice could affect “our ability to invest in great new TV and movies.”
The streaming giant rolled out these changes in Canada and New Zealand back in February.
It caused a backlash from these countries, where the streaming giant saw a sudden drop in subscribers.
Netflix found that the numbers came back after a period of time, with customers subscribing to the “additional member” option.
The streaming service expects the same response to appear in Australia once the changes are implemented.
It is not yet known when the changes will take place in the country.
How much does a subscription to Netflix cost?
The monthly price of a subscription in Australia starts at $6.99 per month to watch the service’s ad-supported movie and TV offerings and 1080p video quality.
Users can pay an additional $4 per month for a basic plan with no ads and 720p video quality.
For $16.99 per month, subscribers can watch ad-free with 1080p video.
Premium subscribers pay as much as $22.99 per month for the highest quality video, including 4K and HDR video.
The incoming changes bring the cost to $30.98 per month for Premium users.