Netflix’s prompt regarding a primary location is a direct result of its efforts to curtail password sharing. The streaming service seeks to ensure that access is limited to individuals residing within a single, designated residence, as outlined in its terms of service. This measure aims to convert viewers who may be using shared accounts into paying subscribers.
Limiting account access to a single physical location is intended to improve revenue generation and maintain profitability. Prior to implementing this requirement, widespread password sharing resulted in significant potential earnings losses. The establishment of a verified household allows for more accurate user tracking and subscription management.