In early 2023, Netflix will start cracking down on passwords
There have been rumors of an end to password sharing, and Netflix has been looking at ways to combat it, but the change is set to officially go into effect next year.
Netflix has long known that password sharing is a problem that affects its bottom line, but the growth of subscriptions in 2020 has allowed the company to not solve the problem. With revenue falling this year and Netflix losing subscribers for the first time in 10 years, Netflix CEO Reed Hastings said it’s time to act on the problem.
Starting in 2023, Netflix plans to ask people who share accounts with others outside their family to pay for it. Netflix is testing additional fees for password exchanges in some Latin American countries, charging about $3 extra.
In these countries, the primary account holder must provide a verification code to anyone outside the family who wants to access the account, with Netflix repeatedly asking for the code until the monthly fee is paid to add non-family subscribers yu.
A similar tactic could be used in the United States, where Netflix might charge a little less than its $6.99 ad-supported plan for non-residential subscribers who share someone else’s plan. Netflix wants those who have a shared password to sign up for their own subscription.
Netflix will enforce password sharing policies via IP addresses, device IDs, and account activity. In order not to alienate customers, Netflix may phase out password sharing rather than stop it all at once.