The Netflix password sharing crackdown is finally happening in early 2023

The Netflix password sharing crackdown is finally happening in early 2023

For those using your partner’s or best friend’s Netflix password, it’s the end of an era: Netflix password sharing is about to get hard, and the streaming site is set to crack down on it in early 2023. .

In the company’s results report(Opens in a new window) Released yesterday, Netflix announced that password sharing will not be available early this year, likely before March, restricting simultaneous use of Netflix accounts beyond households. Instead, the company is focused on boosting its paid-to-share option, as well as its lower-priced subscription plan with ads.

“Later in the first quarter, we expect to begin rolling out paid sharing more broadly,” the Netflix report reads.


Netflix will release a huge number of movies in 2023. Watch the trailer.

Netflix said that account sharing, which it attributed to more than 100 million households, “undermines our long-term ability to invest in and improve Netflix, as well as build our business.” The crackdown is not a new intention on the part of Netflix; previously, it tested additional fees and mocked charging for shared accounts since 2021.

“While our terms of use limit Netflix use to one household, we recognize this is a change for members who share their account more broadly,” the Netflix report reads.

“So we’ve been hard at work creating additional new features that enhance the Netflix experience, including the ability for members to check which devices are using their account and 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.”

Under the new terms, those who live under the same roof can use a single Netflix account, keeping household in its strictest definition. This has already been proven in the Latin American market.(Opens in a new window), where those who shared passwords had to pay the new additional fees. The new rules did result in some “cancellation reactions,” Netflix says, however the company hopes “borrowing households” will follow the new rules and set up their own independent accounts, which would ultimately improve the company’s revenue. . Whether or not people actually do that remains to be seen, but Netflix is ​​hopeful.

In the meantime, all members can still watch Netflix on the go, on any device.

According to the Wall Street Journal(Opens in a new window), Netflix is ​​the first streaming service to adopt a password enforcement policy. How exactly will the company enforce these adjustments?(Opens in a new window) has not been disclosed. However, Netflix launched a “profile transfer” feature(Opens in a new window) in October 2022, probably preparing for the next process. With this, a person can transfer his Netflix profile (ie the record of everything he has watched and his watch list) if he starts his own membership.

Netflix faces fierce competition from its peers, both old and new, and after losing a million subscribers(Opens in a new window) in 2022, after raising prices, the company is making big moves to reestablish itself. It looks like the company has found its footing, spending $17 billion on content in 2022. But Netflix’s competition extends to streaming video platforms like TikTok and YouTube, as the company writes in its report.

“It is not easy to build a large and profitable broadcast business,” the report read. “But we are competing from a position of strength, as we lead the industry in terms of share, revenue and streaming earnings.”

It looks like you only have a few more months to share passwords before you have to pay.

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