The plans of the popular streaming service Netflix stop sharing your password as of early 2023, according to a new Wall Street Journal report.
Without the company making official the persistent rumors about ending password sharing, Netflix started doing it explore methods to crack it down, but the changes will officially go into effect next year.
The popular series and movie platform has known for a long time that sharing passwords it’s a problem impacting its bottom line, but surging subscriptions in 2020 has allowed the company to avoid addressing it.
With revenue plummeting this year and Netflix’s first loss of subscribers in 10 years, Netflix CEO Reed Hastings decided it was time to act on the issue, which had been delayed for far too long.
Here’s why starting in 2023, Netflix plans to ask people who share accounts with others outside their household to do so pay to do it.
Previously, Netflix tested this method of sharing passwords in early March in some Latin American countries – Argentina, Chile, Peru and Costa Rica – charging around $3 additional dollars.
In these countries, the primary account owner would have to provide a verification code to anyone outside the household who wants to access the account, and Netflix repeatedly asks for the code until a monthly fee is paid to add non-household subscribers.
A similar tactic could be used in the US, with Netflix possibly charging just less than the cost of its ad-supported plan. $6.99 dollars for subscribers who are not from home and share someone’s plan.
Netflix wants those who have a shared password to sign up for their subscription. Netflix will enforce password sharing rules via IP addresses, device IDs, and account activity. The goal is to phase out password sharing instead of doing it all at once.
One method the company reportedly considered was addition paid content which may cause users to not want to share their passwords with people who may rent content, but ultimately decide not to use it.
The terms of service have never allowed for an account to be shared between multiple households, but Netflix has rejected the opportunity to implement additional fees for fear of inconveniencing some of its subscribers.
An estimated 222 million paying households share passwords with another 100 million households that Netflix wants to monetize.
The Netflix password sharing controversy in Argentina
The news that the company with a capital “N” would charge extra to share an account in different houses was not well received in Argentina at all. After the prosecution went into effect on August 22, thousands of users flooded the networks with the slogan “Hello Netflix” as a way to boycott.
The wave of criticism and a dwindling subscriber base prompted Netflix to backtrack on its decision limiting free account sharing. The “add a home” feature was disabled in early October.
“After listening to consumer feedback, we have decided to discontinue the ‘Add a Home’ features in Argentina, El Salvador, Guatemala, Honduras and the Dominican Republic,” they explained regarding the additional cost of 219 pesos plus tax for each home or extra “home”.
Source: Clarin
Linda Price is a tech expert at News Rebeat. With a deep understanding of the latest developments in the world of technology and a passion for innovation, Linda provides insightful and informative coverage of the cutting-edge advancements shaping our world.