Netflix Starts to Crack Down on Password Sharing
The great Netflix password crackdown has begun.
The streaming giant sent out an email on Tuesday to U.S. members who are sharing their account with people living outside their household that made clear it would begin kicking people off the service if they were using someone’s account for more than 30 days while at a different location.
For households willing to pay for an additional person to have access to their account, Netflix said it would charge an extra $7.99 per person. Otherwise, it said, it would encourage those users to sign up for an account themselves. (Netflix allows users to transfer their existing profiles to a new account to save their algorithm.)
The news was not a surprise. More than a year ago, in April 2022, the company announced its first subscriber loss in 10 years, attributing the decline, in part, to shifting economic forces as well as increased competition from other streaming services. It said at the time that it would look for ways to increase revenue, including adding a cheaper ad tier and cracking down on password sharing among households. Netflix estimated that 100 million people worldwide were accessing their streaming service without paying for it.
Netflix offers a variety of pricing options now, from $6.99 a month on the low end for an ad-supported version, to $19.99 a month on the high end for a version that doesn’t include ads and allows subscribers to add two other members for an additional $7.99 a month, per person.
Source: The New York Times
