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Netflix begins crackdown on password sharing, extra $7.99 for sharing account

Dinesh by Dinesh
May 31, 2023
in Apps, World
Reading Time: 4 mins read
Netflix

Netflix has officially started crackdown on password sharing. The move has begun in the US and global markets after an initial delay. Now, those who have been sharing their Netflix password with others will either have to remove others from their accounts or pay $7.99 a month for an additional membership.

The prominent US streamer had originally planned to shut down password sharing back in early 2023 but had to push it to the summer after the market responded harshly. The new password-sharing rules will soon come into place for more global markets in the coming weeks.

The company offers tools to make this transition easier, including a way for current subscribers to view which devices are signed into their account and remove those that shouldn’t have access, as well as tools to reset their password.

Those sharing someone’s Netflix account can easily to their own account using a feature “Transfer Profile” option which allows them to relocate their watchlist, viewing history and watchlist.

Netflix has suffered from losing subscribers to its earnings in recent years. IN Q2 2022, the company lost a million subscribers which forced the company to re-strategize its way forward and keep its business in shape. It has also introduced cheaper plans with ads but that hasn’t made amends to its fledgling economy. So, the company finds password-sharing removal a vital step to sustain itself amidst growing domestic and global competition.

Also read:

  • Netflix Could Soon Charge Users for Sharing Passwords
  • Netflix Expanding Into Video Games With Free Subscriptions

The streamer is adamant that it’s the right step forward

As expected, the removal of the password sharing facility has drawn backlash from the subscribers with some even quitting the streamer. However, Netflix says that despite some cancellations, the move will draw benefits in the long run and will boost its financial health.

Netflix announced on its blog that it’s sending an email to its US subscribers who are sharing their Netflix account.

Watching Netflix on TV

“A Netflix account is for use by one household,” the company admonishes. “Everyone living in that household can use Netflix wherever they are — at home, on the go, on holiday — and take advantage of new features like Transfer Profile and Manage Access and Devices,” the post reads.

Earlier, Netflix co-CEO Greg Peters said on the Netflix password sharing crackdown:

“We see an initial cancel reaction and then we build out of that, both in terms of membership and revenue as borrowers sign up for their own Netflix accounts and existing members purchase that extra member facility for folks that they want to share with,” Peters told investors on the earning call in April. “So, first of all, it was a strong validation to see consistent results in these new countries, because there are different market characteristics different from each other and also different from the original Latin American rollout countries,” he added.

Do read: NTA prepares the draft framework for the regulation of OTT platforms in Nepal

Countries where Netflix password sharing crackdown has started

Netflix began testing password-sharing removal in Latin American markets and expanded it to Canada, New Zealand, Portugal, and Spain.

Now, it covers a broader range of global markets such as Brazil, Belize, Bolivia, Germany, France, Iceland, Ireland, the Philippines, Italy, Malaysia, Israel, Thailand, Taiwan, Switzerland, Sweden, and others.

Netflix in Nepal

Netflix also has a huge number of subscribers in Nepal despite lacking an official channel for a subscription. So, most are accessing OTT content on a password-sharing basis which can now be impacted by the new rules. Check out: Netflix price in Nepal

Netflix has 232.5 million accounts globally.

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Dinesh

Dinesh

An experienced tech writer covering news mostly on telecommunication, internet, latest tech & trends, and Gadgets. Being a technophile, I am particularly fascinated by the evolution of mobile networks in Nepal from legacy networks (2G, 3G) to 4G (with VoLTE, VoWiFi, eSIM) and the prospects of the upcoming 5G, and equally enthralled by the development of internet from the dial-up connection to the 2 Gbps XGS-PON fiber broadband technology and their transformative impact in the country.

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