Netflix Cracks Down on Password Sharing Globally: What You Need to Know
Netflix has begun to crack down on password sharing in the US and other global markets, after a delayed launch. The company originally planned to introduce “paid sharing” to US subscribers in Q1 2023 but delayed the start date to the summer, after seeing cancellations in markets where it had already launched the changes. Under the new rules, US subscribers will have to either remove people from their Netflix account or pay $7.99 per month for an additional membership for those outside their main household. The crackdown will also be rolled out across all regions globally, including the UK, France, Germany, Mexico, Brazil, Singapore, and Australia, among others.
Netflix has been testing the feature in different markets, including Latin America, Canada, New Zealand, Portugal, and Spain, before launching the global crackdown. The company uses IP addresses, device IDs, and account activity to determine which devices are part of a Netflix household. The extra member feature is currently not available to Netflix users who sign up through third parties and cannot be added to either Netflix's $6.99 ad-supported plan or the $9.99 Basic plan. The option to add extra member slots is available exclusively for the Standard plan priced at $15.49 and the Premium plan priced at $19.99.
Netflix co-CEO Greg Peters said that the crackdown is like a price increase and that the company sees an initial cancel reaction, but then it sees increased acquisition and revenue as borrowers sign up for their own Netflix accounts and existing members purchase that extra member facility for folks that they want to share it with. Netflix said it has seen a “cancel reaction in each market when we announce the news” about the paid sharing option, but then it sees “increased acquisition and revenue”.
Netflix has advised telecoms companies including Sky, Virgin Media, and BT to brace for a potential backlash from customers who view its films and TV shows through their services. The company has also warned broadband providers that offer bundles with Netflix subscriber access as part of the monthly fee to prepare for some blowback over the decision. Netflix says it does not collect GPS data from user devices and that it uses information such as IP addresses, device IDs, and account activity to determine whether a device signed into a Netflix account is part of the user's household.
0. “Netflix expands password sharing crackdown to UK” BBC, 23 May. 2023, https://www.bbc.com/news/business-65691127
1. “Netflix begins its password sharing crackdown in the US and global markets” TechCrunch, 23 May. 2023, https://techcrunch.com/2023/05/23/netflix-begins-its-password-sharing-crackdown-in-the-u-s
2. “Netflix password-sharing crackdown rolls out in the U.S.” CNBC, 23 May. 2023, https://www.cnbc.com/2023/05/23/netflix-password-sharing-crackdown.html
3. “Netflix's password sharing crackdown officially hits US users” Yahoo Finance, 23 May. 2023, https://finance.yahoo.com/news/netflixs-password-sharing-crackdown-officially-hits-us-users-183143562.html
4. “Netflix crackdown on password sharing reaches the UK” The Guardian, 24 May. 2023, https://www.theguardian.com/media/2023/may/23/netflix-crackdown-on-password-sharing-reaches-the-uk
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 Launches Paid Sharing in U.S., Will Start Blocking Users With Unauthorized Passwords” Variety, 23 May. 2023, https://variety.com/2023/digital/news/netflix-us-password-crackdown-paid-sharing-block-devices-1235607517
7. “Netflix begins password sharing crackdown in the US” CNN, 23 May. 2023, https://www.cnn.com/2023/05/23/business/netflix-password-sharing/index.html