Netflix's Password-Sharing Crackdown Comes Full Circle, Reaches United States

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Since the end of the honeymoon period marked by staggering profits and growth during the COVID lock-downs, companies have been facing a sobering reality as both profits and growth rapidly decline. In order to offset the negative impact, companies are resorting to unconventional tactics. One notable example is Netflix's recent crackdown on password sharing.

In an effort to overcome the economic downturn and restore profitability, Netflix has implemented restrictions on password sharing across various international markets. Although this decision initially generated controversy, it has not deterred Netflix from moving forward with its plans. For U.S. subscribers, the day has finally arrived. In a blog post, Netflix shared an email that will be sent to its subscriber base, detailing the upcoming changes.

According to the post, Netflix is making following changes:

  • Members within the same household can continue to share the Netflix account and password.
  • Members within the same household can stream from any location.
  • For each non-household member, they can either purchase a new membership for $7.99/month or transfer their profile to a separate Netflix account.


Additionally, Netflix is recommending that users verify all devices with access to their Netflix account and encouraging them to sign out of devices that are unfamiliar or even change their password.

There are certain limitations on which accounts are eligible for extra memberships, as outlined in the Support Page:

  • The extra member must activate their account in the same country where the account owner created their account.
  • Extra members cannot be added to Netflix-included packages or third-party billed accounts.
  • Extra members cannot be added to ad-supported plans.

Non-household extra memnbers would have following restrictions on their accounts:

  • Streaming limited to one device at a time.
  • Downloading content limited to one device at a time.
  • Inability to add extra profiles or create a kids' profile due to parental safety concerns.


ThoughtsUnboxed acknowledges Netflix's definition of a household. However, Netflix has not clarified this in the email intended for users or in the blog post, potentially causing confusion for subscribers, especially those who are unfamiliar with Netflix's definition of a household.

Furthermore, it appears that extra members are not considered equal to the household members. The imposed restrictions are stringent, with Netflix hoping to discourage the addition of non-household members to profiles and instead prompting them to create separate accounts. Only time will reveal the extent to which Netflix can attract new subscribers after this decisive crackdown on password sharing. Currently, there is no market data available to provide insight. The upcoming quarterly earning reports will undoubtedly be of interest to keen observers.

Netflix is also expanding the same restrictions to other markets including Canada, Europe and UK, where the charges would be CAD $7.99, €4.99 and £4.99 a month respectively.

 

Sources:

Netflix Blog - Update on Sharing

Netflix Support - Extra Memnbers

Netflix Support - What is a Netflix Household?

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