Netflix Enforces Password Sharing Crackdown in US and Global Markets

Netflix’s crackdown on password sharing has finally rolled out to US subscribers and other global markets, following a delayed launch. Under the new rules, US subscribers will have to either kick people off their Netflix account or pay $7.99 per month for an additional membership for those outside their main household.[0] Netflix has been talking about cracking down on password sharing for months and has finally unveiled a concrete plan to do so. The company shared a planned email to customers explaining that any additional user who attempts to access accounts outside the subscriber’s home must pay an additional $7.99 per month.[1] Netflix also introduced the idea of transferring a profile, which will allow new subscribers who were previously using a profile on a friend or family member’s account to keep their preferences and watch history if they switch to a paid account.[2]

Netflix’s new and stricter regime means anyone using the account outside the primary household may not be able to access it, although users who travel can still bring Netflix along with them on verified devices and even log into their accounts via televisions outside their household.[3] Users have the ability to view the devices that are currently logged into their account and can log out of any that they have not authorized or no longer use.[4] Netflix has warned broadband providers about the decision, as it is one thing for the price of a service to go up, but it’s another thing for an option you have now to be taken away and then sold back to you as a paid upgrade.[5]

Netflix has estimated that about 100 million homes that pay for its service globally share their passwords with friends and family.[6] In February 2023, Netflix introduced the paid-sharing plan in four markets – Canada, New Zealand, Portugal and Spain – with the “buy an extra member” option that allows primary account holders to pay an additional monthly fee for a sub-account for one or two people they don’t live with.[7] Netflix had first begun testing the feature in Latin American markets before expanding access to Canada, New Zealand, Portugal and Spain earlier this year.[8] Today’s worldwide release will expand its reach to a wider range of international markets, encompassing countries such as Brazil, Bolivia, Belize, France, Germany, Iceland, Ireland, Italy, the Philippines, Malaysia, Israel, Thailand, Taiwan, Switzerland, Sweden, and more.[8]

On Tuesday, the streaming service notified its members about the new sharing policy, emphasizing that Netflix accounts can only be shared within a single household.[9] Netflix co-CEO Greg Peters said he expects some subscribers to initially cancel in response to the policy, as they have with previous price increases, but he seems to anticipate Netflix users getting on board.[10] He says some secondary users “are watching as much of our shows as a normal paying account, and those folks have a very strong likelihood to convert” to the new payment model.[10]

0. “Netflix’s Password-Sharing Crackdown Finally Hits The US, Here’s What It Means” GameSpot, 23 May. 2023, https://www.gamespot.com/articles/netflixs-password-sharing-crackdown-finally-hits-the-us-heres-what-it-means/1100-6514476/

1. “Netflix starts charging for account sharing in the US” Engadget, 23 May. 2023, https://www.engadget.com/netflix-starts-charging-for-account-sharing-in-the-us-185133792.html

2. “Netflix Announces Extra Member Tier as First Step of U.S. Password-Sharing Crackdown” IGN, 23 May. 2023, https://www.ign.com/articles/netflix-announces-extra-member-tier-as-first-step-of-us-password-sharing-crackdown

3. “Netflix to Begin Emailing Users Sharing Netflix Outside Their Household” ComicBook.com, 23 May. 2023, https://comicbook.com/tv-shows/news/netflix-emails-users-sharing-netflix-outside-household

4. “Netflix Starts to Roll Out its Password Sharing Crackdown In The United States” Cord Cutters News, 23 May. 2023, https://cordcuttersnews.com/netflix-starts-to-roll-out-its-password-sharing-crackdown-in-the-united-states/

5. “Netflix expects the password sharing backlash to be so big, it’s warning partners” TechRadar, 17 May. 2023, https://www.techradar.com/news/netflix-expects-the-password-sharing-backlash-to-be-so-big-its-warning-partners

6. “Netflix crackdown on password sharing reaches the UK” The Guardian, 23 May. 2023, https://www.theguardian.com/media/2023/may/23/netflix-crackdown-on-password-sharing-reaches-the-uk

7. “Netflix Launches Paid Sharing in U.S., Will Start Blocking Users With Unauthorized Passwords” Variety, 23 May. 2023, https://variety.com/2023/digital/news/netflix-us-password-crackdown-paid-sharing-block-devices-1235607517

8. “Netflix begins its password sharing crackdown in the U.S.” TechCrunch, 23 May. 2023, https://techcrunch.com/2023/05/23/netflix-begins-its-password-sharing-crackdown-in-the-u-s

9. “Netflix password sharing crackdown rolls out in the U.S.” NBC News, 23 May. 2023, https://www.nbcnews.com/business/consumer/netflix-password-sharing-crackdown-rolls-out-in-the-us-rcna85850

10. “Netflix Will Now Charge You To Share Your Password – /Film” /Film, 23 May. 2023, https://www.slashfilm.com/1294268/netflix-will-charge-you-to-share-your-password/