Netflix Password Sharing Crackdown to Expand to U.S. in Q2 2023

[MacRumors]

Netflix is planning a "broad rollout" of the password sharing crackdown that it began implementing in 2022, the company said today in its Q1 2023 earnings report [PDF].

The "paid sharing" plan that Netflix has been testing in a limited number of countries will expand to additional countries in the second quarter, including the United States. Netflix said that it was "pleased with the results" of the password sharing restrictions that it implemented in Canada, New Zealand, Spain, and Portugal earlier this year.

Netflix initially planned to start eliminating password sharing in the United States in the first quarter of the year, but the company said that it had learned from its tests and "found opportunities to improve the experience for members." There is a "cancel reaction" expected in each market where paid sharing is implemented, but increased revenue comes later as borrowers activate their own Netflix accounts and existing members add "extra member" accounts.

In Canada, paid sharing resulted in a larger Netflix membership base and an acceleration in revenue growth, which has given Netflix the confidence to expand it to the United States.

When Netflix brings its paid sharing rules to the United States, multi-household account use will no longer be permitted. Netflix subscribers who share an account with those who do not live with them will need to pay for an additional member. In Canada, Netflix charges $7.99 CAD for an extra member, which is around $6.

Prices are per person, and up to two additional people can be added to an existing Netflix Standard or Premium plan. The extra price provides each person with a profile, personalized recommendations, login, and password. Alternatively, people who share a Netflix account with someone outside of their household at the current time can initiate a profile transfer process that will allow the person who has free access to the account to make their own separate, paid account.

Netflix users will need to establish a primary location, and subscribers who are not at this location will not be able to use the service through that account. There are allowances for travel or second homes, with Netflix requiring users to open the Netflix app at the primary location once per month.

Netflix claims that more than 100 million households are sharing accounts, which is impacting its ability to "invest in and improve Netflix" for paying members.

Article Link: Netflix Password Sharing Crackdown to Expand to U.S. in Q2 2023

 

[macsplusmacs]

I just wish the apple tv app would auto choose me, instead of me having to select a dang user every time.

Netflix.

It's just me.

Just auto log in please.

 

[TheYayAreaLiving 🎗️]

Zero Worries. Canceled Netflix a long time ago and I don't have any regrets!

 

[AppleTO]

I was sharing with my parents (who were paying), and now I have no more Netflix. 🤷‍♂️

 

[ThisBougieLife]

Last week I realized I hadn't logged into Netflix in almost three months (and at that point I was only really watching Chef's Table). I will have no issues dropping Netflix for now.

Netflix will go into the bin of streaming services that I temporarily subscribe to for a couple of months at a time just to watch one show.

 

[BradWI]

Netflix reported in the same earnings report that since they banned password sharing in Canada, they have actually added subscribers and the growth rate is now higher there than in the US. They report some initial cancellations as expected but signups by those who were freeloading more than made up for it.

I'd expect the same to happen in the US despite the vocal minority.

 

[Deguello]

Their company, their rules, but it’s asinine to act like including more streams in the UHD package is helpful. Charge per resolution level, if you still think that’s coherent in 2023, and charge per simultaneous stream, wherever located, and the issue goes away.

Requiring me to buy additional streams I can’t use to get the resolution I want is lame. Perhaps to the point where I start to subscribe, binge anything attractive, and cancel rather than keep a subscription 12 months a year.

 

[macsplusmacs]

Some people better binge the rest of "Love in Blind" before the crackdown.

 

[AppleTO]

So what happens if you use a privacy VPN? Does it just not work at all because it's different than your ISP's public IP?

 

[eicca]

“Love is sharing the password”
-Netflix themselves, not long ago.

 

[Crowbot]

I was old school and only had the Netflix DVD service. I got an email today that they are shutting it down in September.
But from what I see here, I'm dubious about signing up for the streaming service.

 

[AppleTO]

Also sucks if you have a cottage. You'll have to purchase two subscriptions if you want to use a TV.

 

[Lakersfan74]

I’m here just for the comments to see how people justify stealing

 

[jlcarpenter]

I guess this means my college students are about to lose Netflix.

 

[TheYayAreaLiving 🎗️]

Does anyone still miss the Netflix DVDs? Who remembers those? Back in the days, it was OK to share/borrow DVDs without any problems.

 

[Crowbot]

I’m here just for the comments to see how people justify stealing

I imagine mostly because it's so easy.

 

[Crowbot]

Does anyone still miss the Netflix DVDs? Who remembers those?

I do still. See message #11.

 

[blazerunner]

I sincerely hope enough American subscribers cancel and forces Netflix to walk back on this like Apple did with their crappy butterfly keyboards.

 

[Return Zero]

“Love is sharing the password”
-Netflix themselves, not long ago.

I'd like this twice if I could. Once for the post, once for homestar's beautiful face.

 

[Crowbot]

I sincerely hope enough American subscribers cancel and forces Netflix to walk back on this like Apple did with their crappy butterfly keyboards.

I think this is clearly something they don't want to do. They need the cash and this is an obvious way to get it.

 

[blazerunner]

I think this is clearly something they don't want to do. They need the cash and this is an obvious way to get it.

They're going to get cancelled. Literally.

I don't care though, let them suffer.

 

[lyngo]

Umm… let’s crack down on passwords, but not be able to figure out how to broadcast a live event. Well done, Netflix. :/

 

[Ion-X]

Thankfully I can get all of Netflix’s content for free on the internet

If they don’t want to offer a fair deal that’s okay! I’ll take the savings.

 

[macduke]

There is a "cancel reaction" expected in each market where paid sharing is implemented, but increased revenue comes later as borrowers activate their own Netflix accounts and existing members add "extra member" accounts.

I mean they can say that all day long but the fact remains that Netflix is the worst value proposition out there. The content is much lower quality and the price is much higher than competitors and you have to pay extra for things that other services typically offer standard, such as 4K resolution. I cancelled my subscription nearly a year ago after signing up for the streaming service when it launched in 2008 for these very reasons.

I haven't missed anything over the past year and I don't suspect that many who are force-cancelled will be willing to suddenly pay for it. I actually know a lot of people's parents who are paying and once this happens they're going to turn it off because they don't use it much.

 

[jdclifford]

Their company, their rules, but it’s asinine to act like including more streams in the UHD package is helpful. Charge per resolution level, if you still think that’s coherent in 2023, and charge per simultaneous stream, wherever located, and the issue goes away.

Requiring me to buy additional streams I can’t use to get the resolution I want is lame. Perhaps to the point where I start to subscribe, binge anything attractive, and cancel rather than keep a subscription 12 months a year.

Maybe Netflix will next introduce a Black & White only service with ads for $4.99/mo?