Netflix begins crackdown on Password sharing


It's the end of an era for people who use their partner's or best friend's Netflix password because the streaming service is going to make it more difficult to share passwords starting in early 2023.

Password-sharing will be made unavailable early this year, most likely before March, which will limit simultaneous use of Netflix accounts to families only, according to the company's financial report, which was published yesterday. The business is instead concentrating on promoting its paid sharing option as well as its more affordable membership plan with ads.

Netflix users: You will no longer be able to share your login details

According to Netflix's release, "later in Q1, we aim to start rolling out paid sharing more broadly."

More than 100 million homes, according to Netflix, share accounts, which the company claimed "undermines our long-term ability to invest in and improve Netflix, as well as develop our business." Netflix has previously experimented with extra fees and hinted at charging for shared accounts as early as 2021, so the crackdown is not a brand-new goal for it.

According to Netflix's report, "While our terms of use limit use of Netflix to a household, we acknowledge this is a change for customers who share their account more widely."

"So we’ve worked hard to build additional new features that improve the Netflix experience, including the ability for members to review which devices are using their account and to transfer a profile to a new account. As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with."
A single Netflix account can be used by all members of a family under the new rules, which adhere to the narrowest definition of the term "household." This has already been put to the test in the Latin American market, where people who shared passwords had to pay the new, higher prices. According to Netflix, the new regulations caused some "cancel reactions," but the firm anticipates that "borrower households" would follow them and create their own separate accounts, which will ultimately increase revenue for the business. Whether or not people really do it is still up in the air, but Netflix seems optimistic.

On any available device, all members can continue to watch Netflix while on the go.

The Wall Street Journal claims that Netflix is the first streaming service to adopt a policy requiring passwords. The specifics of the company's implementation of these changes have not been made public. But in October 2022, Netflix introduced a "profile transfer" function, perhaps in preparation for the upcoming procedure. This allows someone to transfer their Netflix profile, which includes their watchlist and a record of everything they've viewed, if they decide to start their own account.

Netflix is up against intense competition from both old and new competitors, and the firm is taking significant steps to rebuild itself after losing one million users in 2022 as a result of price increases. With a projected $17 billion in content investment in 2022, the corporation appears to have found its feet. As the business notes in its research, TikTok and YouTube are also video streaming services that compete with Netflix.

The paper states that "it's not easy to develop a large and lucrative streaming business." But given that we lead the sector in terms of engagement, revenue, and streaming profit, we are competing from a position of strength.

It appears that you just have a few more months of password sharing left before you must make a purchase.

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