Netflix Clampdown Trial In Latin America Hints At How It Plans To Stamp Out Password Sharing

A trial in Latin America gives an indication of how it might implement the changes around the world with around eight weeks left before Netflix is expected to widely roll out plans to end free password-sharing.

Netflix's help sections for Peru, Costa Rica, and Chile, where the streaming service has been testing the modifications, describe how it utilizes IP addresses and device IDs to determine where the account is being accessed from.

In the trial areas, users must set up a "primary location" through their TV, which must be confirmed through email or text message. A device will be blocked if someone tries to access a Netflix account from anywhere other than its primary location.

Customers using Netflix in trial areas are also advised to view something every 31 days to prevent their device from losing connection to their primary location.

Users can allow people from outside their household to access their account under paid sharing by paying an extra cost. Netflix stated in a letter to shareholders dated Jan. 19 that it anticipates "roll out paid sharing more broadly" by the end of the first quarter of 2023, reports Fortune.

"If you are traveling or live between different places, you can continue to enjoy Netflix," the help section adds. It also says that users can request a temporary-access code that lasts for a week, and they can change the primary location at any time through a TV. Alternatively, customers should "consider adding an extra member to your account."

Even though its terms of service already only permit accounts to be used by a single household, the company said that it "recognizes this is a change for members who share their account more broadly." However, it's uncertain if the wider implementation of password-sharing rules will closely resemble the trial being conducted in Latin America, reports Business Insider.

According to Netflix, adding additional members costs $2 to $3 in the nations where paid sharing has been tested. However, several Netflix users in Peru claimed to the Rest of World that the password-sharing prohibition had not been enforced against them.

This expected rollout comes after an ad-supported subscription tier, in which customers are shown up to five advertisements an hour, launched in Nov. At $7 a month, "Basic With Ads" costs $3 less than the cheapest ad-free tier.