Netflix to Expand Crackdown on Password Sharing in Q1 2023

[MacRumors]

Netflix today said that it plans to roll out paid sharing "more broadly" in the first quarter of 2023, expanding a crackdown on Netflix accounts that are shared between multiple households.

In a Q4 shareholder letter explaining the changes [PDF], Netflix says that widespread account sharing undermines its ability to invest in and improve the service.

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.

Based on testing in Latin America, Netflix says that it is anticipating "some cancel reaction" in each market where paid sharing is introduced, but an overall improvement in revenue is expected as "borrower households" activate standalone accounts and as extra member accounts are added. According to Netflix, an estimated 222 million paying households share passwords with an additional 100 million households that could be monetized.

Netflix will require people who share accounts with others outside of their household to pay to do so. Add-on payments have already rolled out in some Latin American countries, with Netflix charging around $3 extra for an additional non-household user. A report from The Wall Street Journal in December suggested Netflix could charge just under $6.99 for account sharing in the United States.

Netflix plans to enforce password sharing rules through IP addresses, device IDs, and account activity.

The terms of service for Netflix have never allowed for multi-household sharing, but Netflix has allowed the practice for so long that implementing fees for offering account access to friends and family could upset some subscribers.

Pricing on Netflix plans includes watching on multiple supported devices in addition to affecting streaming quality, but Netflix does not want multiple viewers using the same account unless they live together. 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, but in the future, access will be limited to people in the same home.

Article Link: Netflix to Expand Crackdown on Password Sharing in Q1 2023

 

[Klagarde]

Interested how this will go, as this could very well backfire. In my case I have seen everything I want to see on Netflix and would probably cancel.

 

[UltimateSyn]

Great, just when I’m due to “expand” on some service cancellations.

 

[TheYayAreaLiving 🎗️]

In the first quarter, Netflix will lose all the revenue money "more broadly". This is not going to end very well for them. In addition, Netflix needs to focus on not charging extra for streaming video quality.

 

[Moonjumper]

If you require a multiple-user subscription to get the best quality image, don't be surprised if people share their account with other users.

 

[icanhazmac]

Good, pay their price for their service or unsubscribe but sharing with those outside your household is against the TOS and analogous to theft.

What is a Netflix Household?

A Netflix account is meant to be shared with people who live in the same location with the account owner.

help.netflix.com

Sharing your Netflix account

A Netflix account is meant to be shared in one household – people who live in the same location with the account owner.

help.netflix.com

Simple as that.

 

[segfaultdotorg]

If I have to have my own account, I will be mildly inconvenienced, but will treat it like most every other streaming service: subscribe for a month and binge, then cancel and switch to a different one.

 

[Realityck]

If I have to have my own account, I will be mildly inconvenienced, but will treat it like most every other streaming service: subscribe for a month and binge, then cancel and switch to a different one.

Thats what most feel comfortable with, not like this new Netflix paid sharing policy will matter much. You only going to stream whats worth it, not need so many sVoD accounts for stuff you don't really need.

 

[BradWI]

Those who don't share now and are paying full price will be incentivized to "legally" share under the new rules. $20 or whatever for a standalone 4K account vs joining someone else's plan as a $5-6 add-on account. Easy decision.

 

[Klagarde]

Good, pay their price for their service or unsubscribe but sharing with those outside your household is against the TOS and analogous to theft.

What is a Netflix Household?

A Netflix account is meant to be shared with people who live in the same location with the account owner.

help.netflix.com

Sharing your Netflix account

A Netflix account is meant to be shared in one household – people who live in the same location with the account owner.

help.netflix.com

Simple as that.

Not sure how it goes, I pay 50% of the expensive subscription with my parents, but don’t live in the same building (they don’t use it). Anyways, once I get prompted as stated before will likely cancel.

 

[kaycrystal626]

I guess all those families with kids in College getting screwed! What if people travel a lot? They can't lack down to one IP address.

 

[mpmbeast]

Good, pay their price for their service or unsubscribe but sharing with those outside your household is against the TOS and analogous to theft.

What is a Netflix Household?

A Netflix account is meant to be shared with people who live in the same location with the account owner.

help.netflix.com

Sharing your Netflix account

A Netflix account is meant to be shared in one household – people who live in the same location with the account owner.

help.netflix.com

Simple as that.

zzzzz If you post extra for 4 screens at a time, what difference does it make if 1 or 2 of them screens are located in a different house? So 4 people watching Netflix in the same house is fine but 2 in the same house and 2 elsewhere isn’t? Wow. This is just greed, greed that will backfire spectacularly as lord will just cancel. I cancelled my Netflix a while ago because of a few reasons, one the rumours of this happening. I refuse to hand over my money to ANY company that would do this.

 

[sw1tcher]

In a Q4 shareholder letter explaining the changes, Netflix says that widespread account sharing undermines its ability to invest in and improve the service.

Your shared Netflix password is safe, the CEO says

Let's all breathe a sigh of relief: If you share a Netflix password, you're safe to keep using it for now, the CEO said on Monday.

www.cnbc.com

"Password sharing is something you have to learn to live with, because there’s so much legitimate password sharing, like you sharing with your spouse, with your kids .... so there’s no bright line, and we’re doing fine as is."

Netflix is cool with you sharing your account

Don't worry about lending your Netflix password. CEO Reed Hastings says sharing entertainment is a good thing.

www.cnet.com

"We love people sharing Netflix," CEO Reed Hastings said Wednesday at the Consumer Electronics Show here in Las Vegas. "That's a positive thing, not a negative thing."

 

[icanhazmac]

If I have to have my own account, I will be mildly inconvenienced, but will treat it like most every other streaming service: subscribe for a month and binge, then cancel and switch to a different one.

This!

I think a lot of the people that complain about the cost/tiers Netflix offers complain because they are too lazy to manage their services.

10 Subscribe to a service that currently has content you want to see at their price
20 Binge content
30 Unsubscribe from service
40 Goto 10

Simple

If Netflix does not offer content you want to see at the price they offer it at then don't watch it. You are not entitled to Netflix's content free or at a discount via sharing accounts.

Simple

 

[now i see it]

Ok, I admit that for a while I was a receiver of a shared account from a friend in another state - the exact situation Netflix is trying to rein in. I was viewing Netflix content for free.

But here’s the monkey-wrench: Even though I was getting it for free, I deleted the app eventually because there wasn’t anything on it that interested me. Basically I ‘cancelled’ their service that I was getting for free.

 

[GabooN]

Ok but my partner and I have a house that I primarily reside in, and for the last year+ she has been living two hours away where we have a small apartment due to her work assignment. I’m there every weekend essentially, plus some extended weeks over holidays etc. We use my netflix but it’s two separate locations. So now I need to pay extra in order to use my own account? Or for my partner to use my account.

I’m already paying for the higher quality and 4 devices streaming.

 

[supremedesigner]

BREAKING: Netflix founder Reed Hastings steps down as co-CEO, will remain as company chairman. 😂

 

[boss.king]

zzzzz If you post extra for 4 screens at a time, what difference does it make if 1 or 2 of them screens are located in a different house? So 4 people watching Netflix in the same house is fine but 2 in the same house and 2 elsewhere isn’t? Wow. This is just greed, greed that will backfire spectacularly as lord will just cancel. I cancelled my Netflix a while ago because of a few reasons, one the rumours of this happening. I refuse to hand over my money to ANY company that would do this.

Exactly. I pay for two concurrent screens but only ever use one. If I can't give one to family members to use, why am I paying for it?

 

[Piplodocus]

I'm kinda curious about this. My girlfriend has netflix. She's round my house more than hers at weekends so have her Netflix login on a couple of my things. Clearly these will be different IPs and my devices. So are they likely to suddenly stop us watching Netflix most weekends when its her watching still? 🤔

 

[SilenceBroken]

I'm okay with Netflix going down.

We downgraded already two months ago from 4K to the HD package to save half the money two months ago... and cut off some other streaming services too, at the time, but now am fully onboard with using solarmovie and TPB again to save money.

 

[Asbow]

If Disney can offer 4K, 6 seats and better content at 1/2 the price so can Netflix.

 

[Realityck]

I guess all those families with kids in College getting screwed! What if people travel a lot? They can't lack down to one IP address.

Netflix is likely to query the subscriber if that is legit then let that go for a college student that is part of a family Netflix plan IMHO. There is no college discount for Netflix, but college students can have 30 days free trial. We should get some feed back this year how this works out for that scenario.

 

[SilenceBroken]

If Disney can offer 4K, 6 seats and better content at 1/2 the price so can Netflix.

Easy about better content... all they're adding this month is Storage Wars, Dance Moms, and ::shudders:: the new wakanda movie.

 

[BrownyQ]

Just so happens I do live with the person who pays for the Netflix account, so no worries on my part.

But I totally see a lot of cancellations as a result of this. Sharing accounts is a way of life, no different than back when we used to file share music, burn mix CDs, or record mixtapes for each other.

 

[Klagarde]

If Disney can offer 4K, 6 seats and better content at 1/2 the price so can Netflix.

It would definitely be a good moment to try out another service, and for another service to come up with interesting deals.