Netflix plans to crack down on password sharing by asking individuals who share their account with others outside their household to pay to do so starting in early 2023. The company will enforce its rules through IP addresses, device IDs, and account activity.
As the winter chill settles in, many of us turn to our trusted streaming service for entertainment and warmth. But for Netflix subscribers who share their password with friends and family outside their household, the upcoming year may bring a cold reality. According to a report from The Wall Street Journal, Netflix plans to put an end to password sharing in early 2023.
For years, rumors have circulated about the end of password sharing on Netflix, and the company has been searching for ways to stop it. However, the changes were put on hold due to the significant increase in subscriptions in 2020. But with revenue falling this year and Netflix experiencing its first subscriber loss in a decade, CEO Reed Hastings has decided it's time to address the issue that has been postponed for too long.
Here's How Netflix Will Enforce Its Password Sharing Rules!
Starting next year, Netflix will ask individuals who share their account with others outside their household to pay to do so. The company has already tested add-on payments for password sharing in Latin American countries, charging around $3 extra. In these countries, the primary account owner must provide a verification code to anyone outside the household who wants to access the account, with Netflix continuing to ask for the code until a monthly fee is paid to add non-household subscribers. It is possible that a similar tactic will be used in the United States, with Netflix charging just below the cost of its $6.99 ad-supported plan for non-household subscribers who share someone's account.
The end of password sharing may come as a shock to some subscribers, as the Netflix terms of service have never allowed for multi-household sharing. However, the company has largely ignored the practice in the past. An estimated 222 million paying households currently share passwords with an additional 100 million households that Netflix hopes to monetize through the new payment system.
To enforce its password sharing rules, Netflix will use IP addresses, device IDs, and account activity. In an effort to not alienate its customers, the company may slowly phase out password sharing rather than immediately stopping it.
As we approach the end of password sharing on Netflix, it's important to consider the cost of sharing an account versus paying for an individual subscription. While sharing may seem like a cost-effective solution, it ultimately takes revenue away from the streaming giant and hinders their ability to bring us the content we love. So, as the winter nights draw in and we huddle on the couch for movie marathons, let's remember to support the content creators and invest in our own subscriptions. And who knows, with a little extra cash in our pockets from ditching the shared password, we might just be able to upgrade to that coveted Ultra HD 4K plan.