Netflix on Thursday said that it will roll out paid sharing “more broadly” during the first quarter 2023. The crackdown comes on Netflix accounts being shared among multiple households. Netflix will enforce its password-sharing rules through IP addresses, device IDs, and account activity.
Today’s widespread account sharing (100M+ households) undermines our long term ability to invest in and improve Netflix, as well as build our business. While our terms of use limit use of Netflix to a household, we recognize this is a change for members who share their account more broadly.
So we’ve worked hard to build additional new features that improve the Netflix experience, including the ability for members to review which devices are using their account and to 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.
Netflix has tested the new policy in Latin America and the streamer says it expects “some cancel reaction” in the markets where paid sharing is imposed. However, it also expects an overall increase in revenue as the “borrower households” opt for standalone accounts.
The new policy will require account sharers to pay to do so. In the Latin American countries where it has been tested, Netflix charges around $3 extra for an additional non-household user. A report from The Wall Street Journal in December indicated that Netflix could levy a charge of just under $6.99 for account sharing in the United States.
Password sharing has long been a thorn in the side of Netflix, as password sharing directly affects the company’s profits, and the streamer has been exploring various ways to put an end to the practice.