Netflix has finally announced that it will introduce a crackdown on sharing passwords with people outside of your household – and soon.
Probably one of the least welcome bits of news amid this cost of living crisis, a new policy is set to come in around the end of March (the exact date is TBC), and will affect accounts around the world.
Essentially, it means we will all have to start paying more if we want to share a password with people we don’t live with.
Multi-household use will incur an additional monthly fee – last year’s trials meant these households were paying an extra £2.40 a month.
The platform already hiked up prices in March 2022 (by either £1 or £2, depending on your subscription).
At the moment, it costs:
- £4.99 per month – for the ad-supported programmes with one device at a time
- £6.99 per month – one device at a time in standard definition
- £10.99 per month – standard subscription, HD and two devices at once
- £15.99 per month – premium subscription, Ultra HD where available, four devices at once
Variety predicts this policy will increase the monthly cost of an account by a quarter to a third.
More than 100 million households reportedly share passwords for the platform at the moment, which Netflix claims “undermines our long-term ability to invest in and improve”.
So, here’s what you need to know.
How will Netflix know you’re sharing your password?
Trials in other countries suggest that the platform knows how many people are sharing your account through a combination of technology, and just relying on users to be conscientious.
Insider reporter Sarah Saril told CBS News it will work based on your geographic location, provided by your IP address of devices connected to the internet.
“If you’re watching on a TV, it’ll provide exactly where you are,” she said. “They only want people in your household, at your address, watching.”
The platform has confirmed that it will use “IP addresses, device IDs and account activity from devices signed into the Netflix account”.
How will Netflix stop password sharing?
Based on the 2022 trials in Latin America, it was intially expected to deploy a nagging system asking users to “verify” some devices outside of your household through authentication codes.
Netflix’s co-CEO Greg Peters said earlier this month that the platform would give those still sharing passwords a “gentle nudge”.
However, tech publication Rest of World called the efforts in Latin America a “mess” due to the inconsistency of the rollout, with many able to dodge the extra prices – while others cancelled their accounts.
According to The Streamable, Netflix will ask users to connect to their primary location’s Wi-Fi and login to the app or website at least once every 31 days.
This will make your devices “trusted devices” which Netflix will remember and leave unblocked – if it has been blocked incorrectly, you’ll need to contact the service.
Is there a penalty for still sharing your password?
Not at the moment.
You won’t be automatically charged if the system picks up on there being too many location streams. Accounts won’t be cancelled either – so it’s not clear how it is actually going to be enforced.
Variety’s Todd Spangler claimed in December: “All signs indicate that the most aggressive Netflix intends to get in the first iteration of the paid-sharing rollout is to keep prodding violators with email reminders and notifications.”
However, it’s worth remembering that the Intellectual Property Office suggested in December that sharing passwords for online streaming services is against copyright law – even if Netflix has never indicated that it will take legal action.
So what happens next?
Peters told Variety in January that they knew the crackdown would “not be a universally popular move”, especially after there was a rise in cancellations in each market.
In a statement though, Netflix remained optimistic that this would only be temporary.
It said: “We believe the pattern will be similar to what we’ve seen in Latin America, with engagement growing over time as we continue to deliver a great slate of programming and borrowers sign up for their own accounts.”
Netflix also hopes that introducing new features – such as allowing members to see all the devices using an account – will stop so many viewers leaving.
But the platform already lost many subscribers last year, with almost a million people unsubscribing between April and July.
Netflix blamed it on factors such as the war in Ukraine (meaning it lost some Russia viewers) and the growth of rival streamers like NOW TV.
This extra charge also comes just some subscribers are already lambasting the Netflix executives for continually cutting shows, leaving them without a satisfying conclusion if they don’t get the viewing numbers.
So, here’s how Twitter has been reacting....