Prepare for Change: Netflix Implements Password Sharing Regulations
Netflix has some news that might disappoint password loyalists. Regardless of your stance, the streaming giant is urging users to change their passwords following its recent and noteworthy regulations.
Over the years, Netflix has made it convenient for people living together to share login information through features like profiles and multiple streams. While this benefited users, especially the 100 million-plus households sharing accounts today, it has posed challenges for Netflix. The company claims that this practice has impacted its revenue and, consequently, its ability to invest in top-notch TV shows and films. Consequently, Netflix is taking strict measures against the practice of password sharing.
The anticipated crackdown has been looming since reports first surfaced in December 2022, hinting at a possible ban on password sharing. Netflix announced that it would test this new feature internationally in March.
In the early days, sharing Netflix credentials was applauded (remember when the company tweeted about it in 2017?). However, with the rise of competitors in the streaming space, such as Disney+ and Hulu, Netflix’s revenue projections have slightly dimmed. This led them to explore ways to attract new subscribers.
According to Forbes, the figures speak volumes. Between April and July 2022, Netflix lost nearly a million subscribers who decided to cancel their service. In June, Netflix co-CEO Ted Sarandos confirmed the addition of advertisement-supported streaming for subscribers willing to endure ads at a reduced monthly rate. Now, the company is making it more challenging for multiple individuals to share a single account, forcing previous account borrowers to pay or risk losing access.
Let’s delve into what you need to know about Netflix’s password sharing restrictions, including who will be affected and when these changes will take effect.
Who Will Be Affected by the Netflix Password Sharing Ban?
Netflix announced in a blog post on May 23 that it would regulate its password-sharing feature for users of the streaming platform. Users who share a Netflix account with people outside their household can expect to receive an email notifying them of this change.
However, users who share an account with individuals within their household, whether at home or while travelling, will not be affected by the password-sharing regulation. Netflix will provide these viewers with features like Transfer Profile and Manage Access and Devices to continue sharing their accounts.
Significant changes, though, will be implemented for users who share a Netflix account with people outside their household.
When Will Netflix Stop Password Sharing?
Reports about the end of Netflix password sharing have circulated since early 2022. However, the streaming giant officially implemented its new protocol on Tuesday, May 23, 2023, in the United States. It is important to note that the new password-sharing regulations are not a complete ban but rather a shift that comes at a cost.
How Much Will Netflix Password Sharing Cost?
The ban on Netflix password sharing doesn’t vanish entirely, but the option to share an account for free is no longer available. Netflix now charges an additional $7.99 per month for accounts used by people outside the account holder’s household. (The most basic, non-ad-supported account currently costs $9.99 per month.)
“We understand our members have abundant entertainment options. Our substantial investment in a wide range of films and TV shows ensures a gratifying Netflix experience tailored to your preferences, moods, languages, and companionship.”
How Can Out-Of-Household Users Be Removed From a Shared Netflix Account?
To avoid paying the shared password fee for users outside the account holder’s household, Netflix encourages profile owners to change their passwords or sign out of all devices. These options are accessible on Netflix’s website.
If the account owner wishes to add additional members to their account, specifically those who don’t live in the same household, they can purchase an additional member for $7.99 per month or more, as stated in the email sent to account holders.
If account owners are not prepared or willing to bear the extra cost for out-of-home viewers, the changes include the option to remove people from the active account. Instructions for this can be found in the transfer account section, prompting the account borrower to sign up for their own membership.
It’s important to note that by adding just one extra user, Netflix’s standard monthly package of $15.49 sees a nearly 50% increase in the subscription cost.
Which Countries Are Affected by the Netflix Password Sharing Ban?
On May 23, Netflix sent emails regarding account sharing to customers in 103 countries and territories, including the United States, United Kingdom, France, Germany, Australia, Singapore, Mexico, and Brazil.
Stay informed about these new Netflix regulations, understand who will be impacted, and take necessary actions to ensure a seamless streaming experience.
