Last year, Netflix had announced that it would start a crackdown on password sharing in the first quarter of 2023. The process has started for the US following Latin America, Canada, New Zealand, Portugal and Spain. The feature will roll out to US users on June 30.
Netflix is sending an email to account holders who have shared passwords with people outside their household stating that a Netflix account is for a single household. If someone from outside that household wants to access Netflix, the account holder will have to pay an extra $7.99 for every person sharing the account up to two people.
In an article titled “An Update on Sharing” dated February 9, 2023, Netflix announced its steps towards changing the password sharing scenario. The company established that a Netflix account is meant for the people living in a household. In the premium plan, Netflix allows 4 simultaneous streams and it is downloadable in up to 6 devices.
The Netflix household is defined by the devices connected to a single wifi. The devices can also be recognized and registered by their IP addresses. If you want to share your account with someone outside your household network, you can add a member by paying Netflix an extra $8 a month. You can add two outsiders on the premium plan and one on the standard plan.
As expected, this decision by Netflix received a fair amount of customer backlash. But the company has decided to stick to its plan despite the initial cancellations. Netflix explained, “Today, over 100 million households are sharing accounts — impacting our ability to invest in great new TV and films.”
In an earnings call with concerned investors, Netflix has maintained a bold position explaining that the decision to make people pay for holding accounts outside a household would bring long-term benefits. Notably, you’d still be able to watch Netflix on the go or in a Hotel. Although the company hasn’t confirmed how exactly it plans to differentiate between an account used by an outsider and the account holders themselves streaming Netflix on a device that is outside while traveling.