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Netflix to Clamp down on password sharing

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Netflix plans to prevent people from sharing accounts and restrain its users from password swapping.

The chief product officer at Netflix, Greg Peters, announced in an interview that NetFlix is looking for measures to restrict password sharing.

Presently, multiple users can share one account if they set up several viewing profiles using one login. Users are meant to buy premium plans to watch Netflix on more than one platform

A user can buy a basic plan at $8.99 per month, but can stream on only one screen at a time. A standard account goes for  $12.99 and permits users to watch on two screens concurrently, while a premium plan goes for $15.99 a month. And it permits users of one account to view on about four screens.

But these plans are meant for users in the same household, and Netflix expects each house to put up its own account. Some users are shunning this by sharing their passwords with people outside of their home.

According to a survey carried out by Magid for CNBC, just below 10% of Netflix users do not pay for using their account. About 35% of millennials share passwords for streaming services, compared to 13% of Baby Boomers and 19% of Generation X.

Magid reveals that out of Netflix’s 137 million customers, about 13.7 million do not pay $9.95 a month, which averages to a likely $135 million in missed transactions for Netflix every month.

Peters said in the interview that, Though Netflix is not ready to declare a plan to put a stop to password sharing: “We are monitoring it, so we are watching the situation. We’ll  look at those consumer-friendly measures to resolve the issue.”

Netflix’s current terms and conditions state: “The Netflix service and any content watched via the service are meant for individual and non-commercial use only. And should not be shared with users beyond your house.”

In a section on Passwords and Account Access, Netflix implies that they may eliminate an account conceived to be used by members outside of the user’s house.  “The user that created the Netflix account and whose Payment Method is charged (the “Account Owner”) has full access and control over the account. And also over the Netflix ready devices that are being used to view our service. The individual is responsible for any action that transpires within the Netflix account.

“We can annul your account or put in on suspension to protect you and our partners from identity theft or other fraudulent activity.”

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