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U.S. Netflix Users Beware: Password Sharing Crackdown To Start Before July

Netflix announced today, April 18th, that its efforts to stop password sharing in the U.S. will begin this summer, with the exact date still to be confirmed. Following successful crackdowns in Canada, New Zealand, Portugal, and Spain, the streaming giant plans to launch “paid sharing” in the U.S. before July.

Starting the Crackdown Before July

The company’s password-sharing crackdown began in Latin America and has since expanded to other countries. Netflix believes the repeated use of a single account from different households amounts to stealing. The crackdown comes after Netflix’s subscriber growth stalled last year.

Netflix’s crackdown on password sharing has already had a significant impact in other countries. For instance, in┬áSpain, the streaming giant lost over a million subscribers due to their strict enforcement of account sharing policies. Learn more about the consequences of this crackdown in Spain.

In its Q1 earnings report, Netflix stated that it had launched paid sharing in four countries and was planning a broader rollout in the U.S. during Q2 (April to June). The streaming service also noted its satisfaction with the results of paid sharing implementation in these countries, with Canada’s paid subscriber base growing faster than that of the U.S.

Netflix’s Password-Sharing Crackdown Details

Netflix’s crackdown revolves around stopping what it perceives as “mooching.” In addition, the company will introduce pricing for “extra members,” with Standard subscribers allowed to buy one extra member and Premium subscribers able to buy two. While the exact pricing for the U.S. is yet to be announced, it is expected to be around $5 more per person.

FAQs about Netflix Password Sharing:

What is Netflix’s password-sharing crackdown?

Netflix’s password-sharing crackdown is an attempt to stop using a single account across multiple households, which the company considers stealing.

When will the crackdown start in the U.S.?

Netflix plans to start the crackdown in the U.S. before July 2023.

How much will it cost for extra members?

The exact pricing for extra members in the U.S. has yet to be announced. However, it is expected to be around $5 more per person.

How many extra members can a subscriber add?

Standard subscribers can add one extra member, while Premium subscribers can add two.

What countries have already implemented the password-sharing crackdown?

Netflix has already implemented the crackdown in Canada, New Zealand, Portugal, and Spain.

What’s Next for Netflix Users

Netflix believes that over 100 million users are violating their rules, translating to significant potential revenue. As a result, subscribers may either pay for the extra members or cancel their Netflix subscription.

Meanwhile, Netflix is expanding its ad-supported tier, offering improved features such as 1080p video quality and the ability to watch two concurrent streams in Canada and Spain. This tier has already attracted more subscribers, contributing to a global total of 232.5 million users in Q1 2023.

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