Netflix Implements Paid Password Sharing Initiative in the US and Warns UK Telecoms Companies of Backlash
Netflix subscribers in the US are now required to pay an additional $7.99 per month to share their accounts with people outside of their household. The streaming platform announced the change via a blog post, in which it explained that it will send an email to US members who are sharing their accounts outside of their household. The company had already been testing its account-sharing enforcement in Canada, New Zealand, Spain and Portugal, where it rolled out a paid password-sharing initiative in 2022. Netflix warned telecoms companies, including Sky and Virgin Media in the UK, to expect a backlash from customers who use their services to watch Netflix for free. According to the company’s estimation, over 100 million households across the globe have been utilizing shared Netflix accounts.
Netflix subscribers will be able to add one extra member to their account with the Standard plan and two with the Premium tier, but the company has made it clear that sharing accounts outside of the household is strictly prohibited. The company will use information such as IP addresses, device IDs and account activity to determine whether a device signed into an account is part of the household. Netflix does not collect GPS data to try to determine the precise physical location of devices. The company advises subscribers to review which devices are signed into their accounts and to consider changing their passwords or signing out of devices that should not have access.
Netflix has reported an increase in its paid subscribers in Canada, where the password-sharing policies have already been implemented. Revenue growth has accelerated in Canada since the launch of the “paid sharing” initiative, and more Canadian subscribers ended up with the company several months after the increased charges. Netflix is reassuring its subscribers that they can still use their service while on the go or on holiday by reviewing which devices are signed into their accounts. The company is investing heavily in a wide variety of new films and TV shows so that there is always something satisfying to watch on Netflix, no matter a person’s taste, mood or language.
0. “Netflix password sharing will cost $7.99 a month per extra viewer” Polygon, 23 May. 2023, https://www.polygon.com/2023/5/23/23734930/netflix-password-sharing-details-and-pricing-may-2023
1. “Netflix has officially begun its plan to make users pay extra for password sharing” NPR, 24 May. 2023, https://www.npr.org/2023/05/24/1177848004/netflix-password-sharing
2. “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
3. “Netflix Stock Rises As Video Streamer Steps Up Crackdown On Freeloaders” Investor’s Business Daily, 24 May. 2023, https://www.investors.com/news/technology/netflix-stock-rises-as-video-streamer-steps-up-crackdown-on-freeloaders/
4. “Netflix Begins Crackdown on Password Sharing in US and UK” MacRumors, 24 May. 2023, https://www.macrumors.com/2023/05/24/netflix-starts-password-sharing-crackdown
5. “Netflix crackdown on account sharing hits US with $8 fee for each extra user” Ars Technica, 23 May. 2023, https://arstechnica.com/tech-policy/2023/05/netflix-crackdown-on-account-sharing-hits-us-with-8-fee-for-each-extra-user/
6. “Netflix begins crackdown on password sharing between Irish households” The Irish Times, 24 May. 2023, https://www.irishtimes.com/business/2023/05/24/netflix-begins-crackdown-on-password-sharing-between-irish-households/
7. “Netflix still charging Canadians who share passwords but not Americans — for now” CBC.ca, 15 May. 2023, https://www.cbc.ca/news/business/netflix-password-sharing-us-delay-1.6841375
8. “Netflix warns UK broadband firms of crackdown on password sharing” The Guardian, 16 May. 2023, https://www.theguardian.com/media/2023/may/16/netflix-uk-broadband-firms-crackdown-password-sharing-sky-virgin-media-bt
9. “Netflix is rolling out a feature that ends password sharing in the US” Popular Science, 24 May. 2023, https://www.popsci.com/technology/netflix-household-password-sharing/
10. “Netflix Says No More Free Pass On Password Sharing — For Real” LAist, 23 May. 2023, https://laist.com/news/arts-and-entertainment/netflix-says-no-more-free-pass-on-password-sharing-for-real