No More Password-Sharing for Netflix in the US

Netflix’s crackdown on password sharing has begun. The streaming giant on Tuesday disclosed the details of its new policy and the associated costs for accommodating users “outside their household” on a single account. 

Users subscribed to the Netflix Standard plan, priced at $15.49 per month, will now have the option to add one extra member at an additional cost of $7.99 per month. Subscribers with the Premium package, which includes 4K streaming, can add up to two extra members, with each member incurring an extra fee of $7.99.

The United Kingdom will also witness similar changes, with Netflix charging £4.99 per month for additional member slots.

Netflix’s Basic or Standard plans with Ads, costing $9.99 and $6.99 per month, respectively, are not eligible to add extra members to their accounts. The company has begun sending emails to US subscribers who share the service outside of their household, informing them about the new password-sharing policies.

Via Netflix

Netflix had previously conducted paid password-sharing experiments, extending the tests to countries such as Canada, New Zealand, Portugal, and Spain in February. Originally planned for a launch earlier this year, the password-sharing crackdown was delayed until now.

According to a support page detailing the new guidelines, “extra members” will have their own passwords and profiles, paid for by the inviting account holder. These accounts come with certain limitations, including activation within the same country, access restricted to one device at a time for viewing and downloading content, and the inability to create additional profiles or log in as a Kids profile.

The company determines what it calles a Netflix Household based on the main place where you watch Netflix, and it can be set up using a TV. Devices that use your Netflix account on the same internet connection as this TV will automatically be part of your Netflix Household.

Facing challenges in subscriber growth, Netflix aims to reverse this trend by implementing various strategies. In addition to cracking down on password sharing, the company introduced an ad-supported plan, which has garnered nearly 5 million active users worldwide. Furthermore, Netflix has made significant investments in games as an additional perk for its subscribers.

Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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