Netflix will crack down on password sharing starting in early 2023.
The company has been looking into ways to stop password sharing over the past few months. Still, the changes will formally take effect in next year, as co-CEO Reed Hastings noted the streamer has waited too long on this issue, according to the Wall Street Journal.
Netflix may gradually phase out password sharing rather than ending it immediately to avoid upsetting users. The streaming behemoth thought about using pay-per-view content to discourage customers from disclosing their credentials to those who might want to rent video but eventually opted against it, per the WSJ.
Netflix lost nearly 1.2 million subscribers in the first half of 2022, with the company placing part of the blame on subscribers who share accounts with friends and family, but did add 2.4 million in the third quarter. The streamer estimates that about 100 million households participate in account sharing, leading to the company launching several efforts to crack down on password sharing.
In November, the streaming platform launched a new feature, Managing Access and Devices, that allows members to view all the recent devices that have streamed from a customer’s account and to log out of specific devices with one click.
In October, Netflix announced the implementation of a Profile Transfer feature that makes it easier for password-sharing users to set up their own accounts with a new tool that allows them to move their profile while keeping all of their customized recommendations, viewing history, My List, saved games and other preferences.
And in select Latin American nations, the streamer has experimented with add-on fees for password sharing, costing an additional $3. In these countries, the primary account holder must give a verification code to anyone attempting to access the account from outside the household. Netflix will keep requesting the code until a monthly charge is paid to add non-household users.
In the U.S., a similar strategy might be employed, with Netflix possibly charging non-household users who share a plan a price that has yet to be announced.