Netflix to Begin Cracking Down on Password Sharing in Early 2023

Popular streaming service Netflix is planning to put an end to password sharing starting in early 2023, according to a new report from The Wall Street Journal. There have been persistent rumors about the end of password sharing, and Netflix has been exploring methods to crack down on it, but the changes are set to officially go into effect next year.

netflix1
Netflix has long known that password sharing is a problem affecting its profits, but the uptick in subscriptions in 2020 allowed the company to avoid addressing it. With revenue falling this year and Netflix's first subscriber loss in 10 years, Netflix CEO Reed Hastings decided it was time to act on the issue, which had been put off for too long.

Starting in 2023, Netflix plans to ask people who share accounts with others outside of their household to pay to do so. Netflix has been testing add-on payments for password sharing in some 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 repeatedly asking for the code until a monthly fee is paid to add non-household subscribers.

A similar tactic could be used in the United States, with Netflix possibly charging just below the cost of its $6.99 ad-supported plan for non-household subscribers who share someone's plan. Netflix wants those who have a shared password to sign up for their own subscription.

Netflix will enforce password sharing rules through IP addresses, device IDs, and account activity. To keep from alienating customers, Netflix may slowly phase out password sharing rather than putting a stop to it all at once. One method Netflix reportedly considered was adding pay-per-view content that could make users not want to share their passwords with people who might rent content, but Netflix ultimately decided against it.

The Netflix terms of service have never allowed for multi-household sharing, but Netflix has looked the other way for so long that implementing fees for offering account access to friends and family could upset some of its subscribers. An estimated 222 million paying households share passwords with an additional 100 million households that Netflix wants to monetize.

Pricing on Netflix plans includes watching on multiple supported devices in addition to affecting streaming quality, but Netflix does not want multiple viewers watching outside of the same household. Netflix's premium plan, for example, allows for Ultra HD 4K streaming and support for watching on four supported devices like iPhones, iPads, and Macs at one time, as long as those devices are owned by people in the same household.

In addition to boosting revenue by eliminating password sharing, Netflix has also introduced a more affordable ad-supported tier that is priced at $6.99 per month in the United States.

Tag: Netflix

Top Rated Comments

Spock Avatar
5 weeks ago
Netflix will be the next Blockbuster. Charging extra for 4k, constant price increases, now restrictions on password sharing. They are enjoying a little bump because of Wednesday but that wont last.
Score: 68 Votes (Like | Disagree)
GizmoDVD Avatar
5 weeks ago
This should be fun. I use it at my home and office and will continue to do so. If they try and stop I’ll just continue my pirate ways with them.
Score: 60 Votes (Like | Disagree)
JM Avatar
5 weeks ago
This’ll end well. ?
Score: 56 Votes (Like | Disagree)
dominiongamma Avatar
5 weeks ago

No problem with this.
They will lose a lot of money
Score: 41 Votes (Like | Disagree)
purplerainpurplerain Avatar
5 weeks ago
Haven’t they heard of a Family Plan that lets main account holder add members?
Score: 37 Votes (Like | Disagree)
summiter Avatar
5 weeks ago
I occasionally use my sibling’s account to watch a movie. Their ability to share with me is the only reason they’ve kept Netflix. Once they stop this casual family sharing ability we’ll cancel for good. So many other options out there now, and frankly we all have subscription fatigue.
Score: 37 Votes (Like | Disagree)

Popular Stories

iOS 16

Apple Releases iOS 16.3 With Security Keys for Apple ID, New HomePod Support, Bug Fixes and More

Monday January 23, 2023 10:10 am PST by
Apple today released iOS 16.3, the third major update to the iOS 16 operating system that first came out in September. iOS 16.3 comes over a month after the launch of iOS 16.2, an update that added the Freeform app, Apple Music Sing, Advanced Data Protection, and more. iOS 16‌.3 can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update....
iOS 16

iOS 16.3 for iPhone Launching Next Week With These 4 New Features

Friday January 20, 2023 11:43 am PST by
In a recent press release, Apple confirmed that iOS 16.3 will be released to the public next week. The software update will be available for the iPhone 8 and newer and includes a handful of new features, changes, and bug fixes. Below, we've recapped bigger features in iOS 16.3, including support for physical security keys as a two-factor authentication option for Apple ID accounts, worldwide ...
iPhone 14 Pro Purple Side Perspective Feature Purple

iPhone 15 Pro Expected Later This Year With These 7 Exclusive Features

Tuesday January 24, 2023 4:53 pm PST by
Apple's next-generation iPhone 15 Pro and iPhone 15 Pro Max are expected to be announced in September as usual. Already, rumors suggest the devices will have at least seven exclusive features not available on the standard iPhone 15 and iPhone 15 Plus. An overview of the seven features rumored to be exclusive to iPhone 15 Pro models:A17 chip: iPhone 15 Pro models will be equipped with an A17...
watchOS 9 Feature

Apple Releases watchOS 9.3 With New Watch Face, Bug Fixes

Monday January 23, 2023 10:06 am PST by
Apple today released watchOS 9.3, the third major update to the watchOS 9 operating system that first launched in September. watchOS 9.3 comes over a month after watchOS 9.2, an update that added new Workout functionality and Crash Detection optimizations. watchOS 9.3 can be downloaded for free through the Apple Watch app on the iPhone by opening it up and going to General > Software Update. ...
iPhone trade in

Apple Adjusts Trade-In Values for iPhones, Macs, and More

Wednesday January 25, 2023 9:40 am PST by
After announcing new Mac and HomePod models last week, Apple adjusted its trade-in values for select devices in the United States. iPhone trade-in values decreased by up to $80, and most Android smartphones also went down. Mac trade-in values remained unchanged or increased by up to $40 depending on the model, while some Apple Watch models increased in value and others decreased. Trade-in...
Ventura Macs Feature Blue

Apple Releases macOS Ventura 13.2

Monday January 23, 2023 10:09 am PST by
Apple today released macOS Ventura 13.2, the second major update to the macOS Ventura operating system initially released in October. macOS Ventura 13.2 comes more than a month after macOS Ventura 13.1, an update that added the Freeform app and other changes. The ‌macOS Ventura‌ 13.2 update can be downloaded for free on all eligible Macs using the Software Update section of System...
Mac mini M2 2023

New 256GB Mac Mini and 512GB MacBook Pro Have Slower SSD Speeds Than Previous Models

Tuesday January 24, 2023 1:11 pm PST by
While the new Mac mini with the M2 chip has a lower $599 starting price, the base model with 256GB of storage has slower SSD read and write speeds compared to the previous-generation model with the M1 chip and 256GB of storage. A teardown of the new Mac mini shared by YouTube channel Brandon Geekabit reveals that the 256GB model is equipped with only a single 256GB storage chip, while the...
apple tv 4k red image

Apple Releases tvOS 16.3

Tuesday January 24, 2023 10:10 am PST by
Apple today released tvOS 16.3, the third major point update to the tvOS 16 operating system that originally came out in September. Available for the Apple TV 4K and Apple TV HD, tvOS 16.3 comes six weeks after tvOS 16.2, an update that added Apple Music Sing. The tvOS 16.3 update can be downloaded over the air through the Settings app on the ‌‌‌‌Apple TV‌‌‌‌ by going to System > Software...