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Before the crackdown, Netflix said it needed to take a tough stance on password-sharing as it said members sharing accounts were weakening its ability to be one of the best streaming services out there. So with the extra revenue it's getting the service must be better than ever right? Well no; Netflix raised prices yet again and admitted it makes too many bad movies.
If you've been sharing your Netflix account this guide will be a handy tool for deciphering how Netflix will enforce its rules, and what your options are if you're looking to keep sharing your account with a friend or family member.
If you're in one of those regions and have a profile (or profiles) on your Netflix account for someone who's outside of your household, there's a good chance that you've already received an email telling you about your options.
Now, the 'Sharing your Netflix account' section of Netflix's Help Center simply explains the rules. It says that "a Netflix account is meant to be shared by people living together in one household", with a household defined as "a collection of the devices connected to the internet at the main place you watch Netflix".
People outside that household will need to sign up for their own account to watch, or buy an 'extra member' slot for your account. By hiding its precise methods for detecting password-sharing, Netflix can alter its methods to prevent them from being circumvented.
As you can see, that's nearly the cost of a basic Netflix plan on its own. And that price is per person, so if you want to add two people to a Netflix Premium account you'll have to double the amounts above.
Exactly how it will do this is unclear, though it has previously outlined plans to use its email/phone verification method to grant access, and also a limited-use code that lets you access the service for seven days.
If you're planning to leave Netflix when password-sharing restrictions are brought in then here are the best Netflix movies you need to watch before you unsubscribe. And if you're thinking about joining one of its rivals then here are the best Disney Plus shows, and the best Prime Video movies that you might want to check out.
Netflix recently expanded more serious efforts at ending password sharing to Canada, New Zealand, Portugal, and Spain. And now, the password-sharing crackdown has arrived in the United States. In a blog post shared on May 23, Netflix noted:
Among other things, Netflix plans to begin blocking devices that it feels are using a Netflix account but not paying for it. The blog post further notes, If you want to share Netflix with someone outside your household, you can use these features.
To ready users for the upcoming crackdown, Netflix has added the option of an easy profile transfer. Very simply, this lets each profile on an account easily become its own account. As Netflix shares in a release:
This is quite a move from a company that reportedly spent $400 million for the Knives Out sequels. And is dropping something like 86 original movies this year. But according to a company blog post, Netflix claims the password sharing is preventing them from investing in top-tier content.
Furthermore, the Netflix shareholder letter, indicated more than 100 million households are sharing passwords. More specifically, 30 million households in the US and Canada share passwords. This is a problem for the streaming platform.
Since the crackdown began in May, account holders have had to determine whether they will allow fellow streamers to utilize the one or two password-sharing slots available for a fee, and if so, who would remain on the account. For Netflix fans with larger numbers of account hangers-on, the situation has prompted negotiations and compromise.
The Wall Street Journal chronicled the Bryan family of Knoxville, Tennessee, which opted against allowing any of their three adult children to remain on the family account given Netflix only allows a maximum of two account sharing slots.
Instead, the father offered up a Microsoft Office family plan to allow the three children to make use of programs like Excel, PowerPoint and Word that, while possibly less entertaining than streaming Netflix, could otherwise prove useful.
Amid the password-sharing crackdown, Netflix created a profile transfer feature that lets formerly freeloading users transfer their viewing profile and preference from the once-shared account to one of their own.
Last October, Netflix hiked prices for the second time in less than two years. The current monthly pricing for the Netflix Standard plan with ads is $6.99. Without ads, the Standard plan will run you $15.49 a month and the Premium plan will cost $22.99.
The company is cracking down on customers who share their accounts with people outside a single geographic household, introducing an $8 monthly charge in a long-threatened bid to retain customers and stanch a slowdown in subscription growth. Netflix uses location tracking to ensure subscribed users are logged in at a single home subscriber base, which is sure to test users already sensitive to growing threats to their online privacy.
Since the end of June, Netflix has blocked devices that attempt to access a Netflix account without paying the proper fees, according to TechRadar. Subscribers in a compliant household can keep using the service on the road, like on laptops or hotel TVs, without paying additional fees.
The Financial Times previously reported that Netflix had alerted internet provider partners in the UK that they should expect angry calls and support questions about the sharing price hike and location tracking features.
This move suggested that despite Netflix's best efforts, the company predicted a large number of subscribers would only detect the change when Netflix demanded an extra $8 for sharing the account outside their new "home" location.
Ben Demers manages digital content and engagement at Kiplinger, informing readers through a range of personal finance articles, e-newsletters, social media, syndicated content, and videos. He is passionate about helping people lead their best lives through sound financial behavior, particularly saving money at home and avoiding scams and identity theft. Ben graduated with an M.P.S. from Georgetown University and a B.A. from Vassar College. He joined Kiplinger in May 2017.","contributorText":"With contributions from","contributors":["name":"Esther D\u2019Amico","role":"Senior News Editor","link":"href":"https:\/\/www.kiplinger.com\/author\/esther-d-amico"]}), " -0-11/js/authorBio.js"); } else console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); Ben DemersSocial Links NavigationAudience Engagement Manager, Kiplinger.comBen Demers manages digital content and engagement at Kiplinger, informing readers through a range of personal finance articles, e-newsletters, social media, syndicated content, and videos. He is passionate about helping people lead their best lives through sound financial behavior, particularly saving money at home and avoiding scams and identity theft. Ben graduated with an M.P.S. from Georgetown University and a B.A. from Vassar College. He joined Kiplinger in May 2017.
A January 31 story on The Streamable suggested that Netflix users watching from multiple locations would have to ensure that any device used to stream titles from a location other than the primary household would have to log in from the primary household and watch something there at least once every 31 days. 9to5mac quoted similar wording from the FAQ page, including the 31-day stipulation.
As of now, the FAQ page does not mention anything about a 31-day window in which users must log their devices into the primary home network, so the company may have walked back that measure in the short time since announcing it.
Members on a Standard or Premium plan can purchase additional member slots for people outside their household. Standard plan users can add one extra member while Premium users can add two extra members to their plans.
Those additional members get full access to the subscription tier of the primary account holder but get their own unique account and password. Their account is simply paid for directly through the primary account holder.
You might be using a password for your Netflix account that you also use for another service. While that may not be a great practice for security reasons, you might still want to keep your password private while sharing your Netflix account with a family number. You can do so by using a password manager.
Most password managers have a password-sharing feature that lets you share your password in a discreet way with your contacts. As long as the person you want to share your password with also has the same password manager installed, the software will take care of automatically logging in without showing your actual password to another party.
Only people who live under the same roof can share accounts, the streaming company says. So you have two options: transfer your friends and family members mooching off your account to a new membership or share your Netflix account for an additional $8 monthly fee.
The popular streaming service used to encourage sharing Netflix credentials with friends and extended family. But it has changed its tune as subscriber growth slowed amid growing competition and a return to pre-pandemic viewing habits.
Cowen senior research analyst John Blackledge estimates that Netflix could pick up 2.1 million new U.S. subscribers from the initiative. Netflix accounted for 7.3% of total TV viewing in February 2023, according to Nielsen.
Moody's Investors Service says the password-sharing initiative could cause "short-term subscriber discontent and disruption but presents the company with a material revenue growth and margin expansion opportunity."
There is some risk, however. Netflix lost more than 1 million users in Spain in the first three months of 2023 after cracking down on password sharing in February, according to market research group Kantar.
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