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Netflix to put an end to password sharing in early 2023
You might finally have to start paying for your own account.
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UPDATE 1/23/2022: In a letter to shareholders, Netflix says they expect to roll out paid account sharing “more broadly” toward the end of the first quarter of 2023. More here: Netflix password sharing could be ending as soon as March. The original story follows below.
Netflix will launch its push to end password sharing some time in early 2023.
The company has been aware that password sharing has been eating away at its profits for years, and it is finally preparing to address the issue.
A new report from The Wall Street Journal outlines how Netflix plans to address it.
Under its new rules, Netflix will start charging extra to users who share their passwords with people outside their homes.
It has already tested a similar feature in Latin America, charging around $3 for each extra household on an account.
WSJ says Netflix could adopt a similar method in the United States. The company may charge just below the $6.99 it costs for an ad-supported tier to add an additional household to an account.
By doing that, Netflix could potentially sway users to sign up for their own accounts instead of using a shared account.
The company plans on enforcing its new sharing rule by looking at IP addresses, device IDs, and other account activity.
Netflix has been aware of password sharing for years now. However, it turned a blind eye after a huge uptick in subscribers and revenue thanks to the pandemic.
But now, the platform has been losing subscribers for the first time in a long time. It hopes ending password sharing could help regain some lost revenue.
Netflix is treading lightly with this change, however. The company knows it will lose a lot of goodwill with customers by ending password sharing.
Look for the company to gradually start cracking down on password sharing worldwide in the next few months.
So much for “love is sharing a password,” right?
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