Well, Netflix password sharing was fun while it lasted. And it lasted for a long, long time. Longer than anyone probably expected. But after years of crackdown rumours, the streaming giant is finally rolling out its new anti-password sharing measures by the end of March.
Having spent the last decade atop the streaming mountain, the bubble appears to have finally burst for Netflix. In its first loss since April 2011, the company’s subscriber base reportedly shrunk by one million users between April and July 2022.
In an effort to mitigate revenues lost by departing subscribers, Netflix has finally decided to crackdown on password sharing.
Password sharing (also known as “account sharing”) is the method through which many people watch Netflix content without paying a penny.
It involves one paying subscriber sharing their account password with friends and family to give them access to the service free of charge. As reported by Forbes, one survey indicated that 22.6% of users engage in password sharing.
The practise has been popular since Netflix’s early days in the streaming game. But, up until now, the company has been lax in proactively restricting password sharing which is not only banned in their terms of service but also illegal. In March 2017, they even tweeted, “Love is sharing a password.”
But with declining revenues, Netflix has decided to finally clampdown on those breaking the rules. The move could force free-loading users to finally subscribe for themselves. But it could also drive many away from the streaming platform for good.
With all this in mind, let’s go over everything you need to know about the new Netflix password sharing policy…
How Will Netflix Stop Password Sharing?
Netflix has long-supported the option for users to set up different profiles within the same account.
The idea is that a single “Netflix household” can share one account and each member of that household can have their own custom profile.
This way, parents can watch their shows without kids coming and spoiling their recommendation algorithm or watchlist.
However, many Netflix users will be familiar with loading up the app to see profiles for people who don’t live at their house. It’s not uncommon for accounts to have profiles for people the primary user doesn’t even know.
So, how will Netflix stop password sharing? According to the newly updated help page, Netflix will now require devices outside of the the primary user’s household to be periodically verified.
Verification will be required when a device attempts to log in from outside the household for the first time or when it is persistently used from another location.
To verify a device and watch Netflix, users will need to complete the following process:
Netflix help page.
- Netflix sends a link to the email address or phone number associated with the primary account owner.
- The link opens a page with a 4-digit verification code.
- The code needs to be entered on the device that requested it within 15 minutes.
- If the code expired, you will need to request a new verification code from the device.
- Once successful, that device can be used to watch Netflix.
- Device verification may be required periodically.
Alternatively, devices are automatically verified by regularly connecting to the main Netflix household’s internet connection and accessing the platform.
How Does Netflix Know A Device Is Outside The Household?
The new crackdown makes use of common device identification methods to detect account access from outside the household.
“We use information such as IP addresses, device IDs, and account activity from devices signed into the Netflix account,” the company explains.
From this information, Netflix can automatically prompt device verification.
What Happens If You Travel And Access Netflix?
Netflix has reassured subscribers that the new password sharing policy shouldn’t impact primary users (or those they live with) from accessing their account.
They say you shouldn’t need to verify your device unless you are away from home for an extended period of time. In this instance, you might need to periodically verify your device to continue watching Netflix.
Penalty For Sharing Netflix Account
As of writing, Netflix has confirmed there will be no penalty for users who share their account password with others.
The Netflix help site explains, “Netflix will not automatically charge you if you share your account with someone who doesn’t live with you.”
While this will alleviate any worries of unexpected charges or bans, it won’t mitigate the annoyance of constant verification requests for those involved in password sharing.
It appears that Netflix has opted to irritate people into compliance instead of slapping them with unexpected charges.
Netflix Password Sharing Fee
Netflix will be introducing password sharing fees before the end of March.
The new paid password sharing system will allow secondary users to have their own sub-accounts under the primary user account. With this, they will be able to watch Netflix away from the main household without requiring verification.
Netflix Password Sharing Fee: The new password sharing fee will be approximately $3.50-$4.00. Trials in Chile, Costa Rica, and Peru set the charge at about one-quarter of the price of Netflix’s Standard subscription plan.
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And that’s basically everything you need to know about the upcoming Netflix password sharing changes.
If you’re someone who watches Netflix using another person’s account, it’s probably best to start having conversations now about what you will do going forward. Either way, you are going to have to look at some kind of expense.
What do you think to the Netflix password sharing crackdown? Is it unfair? Let us know in the comment section below and check out our other Film & TV articles…
