Here is how Netflix plans to put an end to password sharing on its platform

Netflix users will be required to buy an extra member account which can be accessed by two people who are not at the primary location

Netflix Inc on Wednesday released the rules to crack down on password sharing for accounts on its streaming platform. Among other things, the OTT giant said that the customers will have to set up a primary location for the account.

"We'll help members set this up, ensuring that anyone who lives in their household can use their Netflix account," it said in a blog post. 

Earlier this month, the company updated its FAQ pages and clarified the meaning of primary location. 

"A primary location is set by a TV that is signed into your account and is connected to your Wi-Fi network. All other devices signed into your account on that Wi-Fi network will be associated with your primary location and will be able to use Netflix," the company said.

Netflix will set a primary location based on IP address, device IDs and activity if a user hasn't specified a primary location or doesn't have a TV.

Also, to ensure that the devices are associated with the primary location, the users will be required to connect to the Wi-Fi at their primary location, open the Netflix app or website, and watch something at least once every 31 days. 

In the blog post, the company said that from today, it will launch the password sharing rules in Canada, New Zealand, Portugal and Spain. They are already functional in Latin America.

The users will also be required to buy an extra member account which can be accessed by two people who are not at the primary location. 

"Members on Netflix's standard or premium plan in many countries can add an extra member sub account for up to two people for an extra C$7.99 a month per person in Canada, NZD$7.99 in New Zealand, 3.99 euros in Portugal, and 5.99 euros in Spain," the company said.

The members will also be able to manage who has access to their account. They can also transfer profile to a new account and still easily watch Netflix on their personal devices or log into a new TV.

Amid tough competition from rivals like Amazon Prime and Apple TV, Netflix lost subscribers in the first half of 2022. Its shar eprice has fallen to $366 on Wednesday from around $600 in January 2022. This has prompted it to look more seriously into password sharing and launching an ad-supported plan.

"As always, we'll refine these new features based on member feedback so that we continue to improve Netflix in the years ahead," it said.