I still don’t understand how this will work. My wife and I both travel for work. We also have two residences. We’re not sharing we just travel.
I don't know
how it will work...but I know how it
could work to account for these very common use case variations without breaking the model.
Right now, anyone with Netflix can go to their "recent streaming activity" and see what devices are on, what those devices
are, and roughly what area they logged on from.
My guess is combining/leveraging those data points to create heuristics to determine likelihood of violating the terms of use/account sharing.
So, for example...both you and your wife travel...do you get new phones/iPods/laptops/echo shows/smart TVs/whatever everywhere you go? I'd bet not, so you and your wife's account is mostly—it not entirely—signed in from a consistent group of devices...maybe your work and personal laptops, phones, etc. Do you and your wife each have your own profile (watch history, recommendations, reviews) on Netflix? Another point of identification.
Contrast that with, say, an account that has 4 different iPhones signed in...showing activity from multiple profiles in multiple states that overlap on the same day....for 90 days straight.
Could each member of a co-habitating family be on their own individual vacations or business travel in different states with no other sign ins from anywhere else? Of course...but it's unlikely—an edge case. That usage pattern would in all likelihood suggest something like parents in one place sharing the account with their kids in a college town somewhere else.
Is that foolproof? No. My guess is that Netflix will create "lenient" detection "triggers"/thresholds that will reset every month or 3...you know, enough to cover most business travel/vacation patterns. Then, when you get a notice that you've gone past too many thresholds and "violated" the terms of use...they'll selectively sign out certain devices or all of them, then clear the "hold". If, after the hold is removed, 4 different devices re-sign in for Netflix from 4 different states in say, 3 days...then that's likely 4 different people, and your account gets marked.
These are overly simplified examples, but what they do will probably be more complex multi-variant triggers that will cross-reference each other. Thinking that that can't be done just because it hasn't to this point is thinking too narrowly.
Netflix was Laissez-faire about account sharing because it suited them during a growth mindset, chasing ubiquity and omnipresence. Who was going to complain when Netflix kept growing and turning in figures that Wall St loved. They never
codified that account sharing, however, and I'd bet a year's salary that that was deliberate.
Now, they turned in a down quarter...changing everything. No one should be surprised that a publicly-traded corporation went back on their "word" (the US legal construct of "corporate personhood" aside...a corporation doesn't have a "word" to give...if it's not in a contract, it doesn't exist) when the money is threatened. Following from that, one can
bet that they're throwing all the resources behind these sharing detection efforts and considering lower priced tiers with ads. Their legal fiduciary duty to maximize value to shareholders outweighs everything else. They
have to do something for shareholders—gross as it is.