Read update
- Netflix Clarifies Its New Policy
Netflix finally reveals the details of their plan to end password sharing. In December, the platform announced that password sharing would no longer be tolerated on the streaming service, starting sometime in 2023. At the time, Netflix was still piloting the new, password-sharing-free model; to work out the logistics, Netflix tested versions of the new plan in several Latin American countries.
Now, Netflix clarifies the details of their plan to stop password sharing in new Help Center pages (via The Streamable). In order to prevent people from widely distributing their passwords, Netflix will now prompt users to sign onto the Wi-Fi of their home location at least once every 31 days. The platform will still allow subscribers to share the account among multiple devices, but those devices must be from users in the same household. The number of devices with sharing allowed will depend on the tier of one’s Netflix plan, as the platform had established previously.
Users who violate the new policy could risk having that device blocked from the account, though subscribers will not be charged for using a device outside the household. For those worried that they will no longer be able to access their accounts while traveling, Netflix has a work-around: The users will be able to sign onto a hotel TV, or their computer, and retain their information on that device for up to seven consecutive days without that device getting banned.
Netflix's Crackdown On Password Sharing Explained
Netflix’s password sharing crackdown comes almost a year after they announced their quarter of major subscriber loss back in spring 2022. This has prompted the platform to consider a number of new initiatives in order to boost the subscriber count, among which is a crackdown on password sharing. Netflix estimates that over 100 million users worldwide access Netflix via another’s account, so their hope is they will be able to see a major subscriber bump by limiting accounts to a single household.
The password sharing crackdown comes in tandem with another initiative Netflix put into place in late 2022: the ad-supported subscription option. Mirroring Hulu’s model, this plan offered users a $6.99/month alternative to Netflix’s regular, ad-free platform. Despite hyping up this possibility and hoping that it would create a huge user boost, the ad-supported option remains the least popular of all of Netflix’s subscription tiers.
As this password sharing crackdown is rolled out, Netflix will have to wait and see whether they get a huge influx of subscribers. This will undoubtedly be a huge upset to some viewers, who use others’ accounts to watch popular content like Wednesday and The Sandman, among hundreds of other TV shows and movies. If things go Netflix’s way, the password crackdown will create a huge influx of subscribers. If this push follows the pattern of the Neftlix ad-supported tier’s introduction, however, Netflix will once again be left scrambling to figure out how they can build up subscribers.
UPDATE: 2023/02/02 23:50 EST BY RACHEL LABONTE
Netflix Clarifies Its New Policy
Since the news broke regarding Netflix's latest policy change, the streamer spoke with The Streamable and stated the rules that went viral only apply to select countries at this moment; it was posted on the domestic help center mistakenly. If any change is rolled out to the entire subscriber base, Netflix will issue a proper announcement. Netflix's statement reads:
“For a brief time yesterday, a help center article containing information that is only applicable to Chile, Costa Rica, and Peru, went live in other countries. We have since updated it.”
Source: Netflix (via The Streamable)