Logged in to binge-watch during Seol holiday, but frustrated... "OTT 'Super Gap' Tyranny"

#On the 2nd, office worker Geum (28, male), who accessed the Netflix application after a long time, received the message, "Your device is not included in the Netflix household for this account." Since 2019, Geum has been subscribing to Netflix with three university seniors as a '4-person pod (group),' but now he has to reduce it to a 3-person pod. Due to Netflix's policy change, if users do not live in the same household, they must pay an additional 5,000 KRW per person per month on top of the original plan fee to use the account. However, only up to two additional members can be registered, so one person from the 4-person pod must create a new account. Geum said, "I think this is the tyranny of a 'super boss.'"

Netflix, the number one online video service (OTT) provider, is reportedly strengthening its crackdown on account sharing this month.

When a user sharing a Netflix account accesses the application, a notification message is displayed. Photo by Reader Provided

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According to the OTT industry on the 7th, internet posts expressing the feeling of Netflix's account sharing crackdown have significantly increased this month. Searching for the phrase "not included in the shared account" that Geum received on Naver KnowledgeiN shows that posts were only six from November to December last year when Netflix started the crackdown, but from January 31 to February 6, the number rose to 32 in just one week. A post uploaded on the 31st of last month said, "I was using it fine until yesterday, but suddenly I can't access it," and asked, "Please tell me what to do." A Netflix representative only stated officially, "We have been gradually applying this since announcing the new pricing policy in November last year."

Netflix had previously introduced an account sharing restriction policy. Previously, it was possible to use Netflix with one account even if users did not live together, but now it is not allowed. Those who do not live together must pay an additional 5,000 KRW per person per month to share an account. For the ad-supported Standard plan (5,500 KRW), additional members cannot be added; for the Standard plan (13,500 KRW), one additional member can be registered; and for the Premium plan (17,000 KRW), up to two additional members can be registered.

According to Netflix, the account sharing crackdown is based on the primary location value of the user household. The primary location value is automatically set based on IP address, device ID, and account activity. If a deviation from the primary location value is detected, users must verify that they live at the same location through an authentication code or similar. To continue using the account without verification, users must connect to Netflix via Wi-Fi at the primary location using their personal mobile device at least once a month. For example, if Geum visits the house set as the account's primary location once a month and watches videos using that home's Wi-Fi, technically account sharing is possible. However, in reality, this is very inconvenient.

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According to a survey by market research firm Consumer Insight on OTT service usage and satisfaction, Netflix ranked first in subscription rate but only third in satisfaction. Especially, satisfaction with "price, composition, and discounts" was 43%, below the average of 45%. In a survey conducted in October last year, 51% of respondents said they would cancel Netflix if the additional fee per account was about 2,000 KRW. Office worker Lee (33, male) said, "It looks like the company is abusing its monopoly power."

Despite such dissatisfaction, Netflix's account sharing restriction policy is expected to be further strengthened. According to Netflix's terms of use, "Members must not share their membership with individuals who are not part of the member's household unless otherwise permitted." In the fourth-quarter earnings announcement last year, Netflix's global subscriber count increased by 13.1 million from the previous quarter to 262.8 million.

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