Key points:

  • Netflix will soon halt password sharing this year, compelling users to pay to avail of its service. 
  • The streaming company has confirmed that the crackdown on password sharing was imminent.
  • It appears that Netflix will now lay down a few rules to put an end to password sharing in the first quarter of 2023. 

While we saw this coming for a while, password sharing on Netflix will soon come to an end. Netflix and chill may not be the answer to your weekend plans as the company prepares for a major crackdown against password sharing. Netflix, in a shareholder statement, said that it will lay down a few rules which will prevent users from sharing passwords. We are likely to see the new changes from March 2023. 

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Why is Netflix stopping password sharing?

Netflix is no stranger to the fact that password sharing has been a prime reason for denting its profits. However, the significant rise in global subscriptions in 2020 as a result of the pandemic was a major factor that allowed the streaming giant to avoid addressing the issue. 

Things have changed since 2020, and Netflix has received a much-needed reality check. Not only have the company’s revenues dipped, but the firm also experienced its first subscriber loss in a decade. Reed Hastings, Netflix’s CEO, said that it is now time to face the issue head-on and address it. 

How will Netflix prevent password sharing?

Netflix wants to start charging anyone who shares their account with people outside of their household beginning in 2023. Netflix has been experimenting with add-on fees for password sharing and plans to charge an additional $3 in some Latin American countries. In these nations, the primary account holder is required to give a verification code to anyone attempting to access the account from outside the household. Netflix will keep requesting the code until a monthly charge is paid to add non-household users.

 A similar strategy might be employed in the U.S., with Netflix possibly charging non-household users who share a plan a price that is slightly less than that of its $6.99 ad-supported plan. Anyone who uses a shared password on Netflix would have to purchase a separate membership.

Netflix will use IP addresses, device IDs, and account activity to enforce its password-sharing policies. The streaming company may gradually phase out password sharing rather than ending it immediately to avoid upsetting users.

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Feature Image Source: Photo by Thibault Penin on Unsplash