Netflix is fed up with users sharing one login and is speeding up its password-sharing ban.
After months of chatter regarding how the streamer planned to stop people from swapping passwords, it is expected to begin cracking down by the end of March. Netflix confirmed that over 100 million people share their login information with people who don’t live in the same home.
For anyone who insists on sharing passwords outside their household, an additional $2.99 fee will be applied to their monthly bills. Last month, several publications suggested the company use IP address monitoring, account activity, and device IDs to ensure all users follow the rules. The company suffered a “tough” 2022, losing an estimated 200,000 subscribers in the first quarter. They eventually ended strong in the fourth quarter, thanks partly to “Harry and Meghan,” which “outperformed” all predictions. Still, the streaming platform believes that the current state of sharing passwords is preventing them from improving its business.
To lessen the blow for those who will lose access if the password owner declines to pay the extra sharing fee, Netflix launched their cheapest tier, “basic with ads.” This option, launched in November, includes everything in the “basic” package but excludes ad-free viewing for $6.99. To accommodate those forced to get their own Netflix accounts, the platform is allowing subscribers to transfer user profiles to a new account, ensuring that recommendations are maintained.
Netflix expects engagement to take a steep dip as customers rebel against the shift. However, the company is depending on people making their own accounts to improve numbers over time.