Netflix announced that its attack on password sharing will officially begin before the end of the first quarter of 2023. The announcement was made during the earnings report for the fourth quarter of 2022. According to the company, more than 100 million households share passwords with other people currently, but that number is about to decrease.
Netflix announces war on password sharing
Netflix says sharing passwords for its movie and series streaming platform “harms our long-term ability to invest and improve the company.” Oficina da Net even reported on charging tests for users who shared their passwords, but now Netflix’s plan is to expand this functionality to a larger audience.
In its letter to investors, Netflix says:
Later in Q1, we expect to start rolling out paid sharing more widely. Today’s widespread account sharing (over 100 million households) undermines our long-term ability to invest in and improve Netflix, as well as build our business.
What will happen to those who share the Netflix password?
If you don’t live in the same household as the person you shared the password with, Netflix will charge you extra to keep it as-is. If the subscriber does not want to do this, it will be possible to migrate the data from a profile to a new Netflix account. Check out the full explanation given by Netflix below.
While our terms of use limit Netflix usage to one family, we recognize this is a change for members who share their accounts more broadly. That’s why we’ve worked hard to create additional new features that enhance the Netflix experience, including the ability for members to check which devices their account is using and transfer a profile to a new account. As we roll out paid sharing, subscribers in many countries will also have the option to pay more if they want to share Netflix with people they don’t live with. As it is today, all members will be able to watch while they travel, whether on TV or mobile.
As we work through this transition – and as some borrowers stop watching because they don’t convert to extra members or full paid accounts – short-term engagement, as measured by third parties like Nielsen’s The Gauge, could be negatively impacted. However, we believe the pattern will be similar to what we’ve seen in Latin America, with engagement growing over time as we continue to offer a large list of programming and borrowers sign up for their own accounts.
