Netflix Password Sharing Crackdown: What Will It Cost You?

If you’ve been streaming Netflix with a borrowed password, you’ve been relying on the generosity of others — and, well, Netflix. This practice has long been a thorn in the side of the streaming giant, with real implications for the bottom line. While you may have been too busy to watch Monsters: The Story of Jeffrey Dahmer To note that Netflix stock has had a miserable year amid a plummeting market and stiff competition from Disney, Apple, and other streamers.

In fact it was in his last winnings announcement that Netflix has hinted that it will bang the hammer on password sharing in 2023. But how?

“After listening to consumer feedback,” Netflix said a shareholder letter“We will offer borrowers the ability to transfer their Netflix profile to their own account and sharers to more easily manage their devices and create sub-accounts (“additional member”) if they wish to pay for family or friends.” Note Note that Netflix’s use of “family” here means people outside of a household — you still have the option to use “features like profiles and multiple streams.”

Also Read :  New crackdown on fraud and money laundering to protect UK economy

As for the cost, nothing is firm from Netflix yet. However, analysts have pointed to market experiments the company has been conducting in its South American market (remember, Netflix is ​​global), where a program to create a sub-account in Costa Rica (a country that uses the US dollar as its) 2 $.99 per user currency). Exactly how this password restriction works could also be complicated, as members of a single paying household may be far away when traveling. When can these changes be expected? “Early 2023,” says the letter from Netflix.

Also Read :  Amazon cost cuts under Andy Jassy reflect new reality after 25 years

Password sharing has always been popular among Netflix users. The service estimates that beyond the 222 million paid accounts, there are an additional 100 million households using the service – and it recognizes that the phenomenon has had its benefits, even if it has eaten into revenue. “Sharing likely helped fuel our growth by getting more people to use and enjoy Netflix,” the company said.

Also Read :  Inside Russia, elite counts destructive cost of war as Putin escalates

And the company is taking some steps to keep even their freeloading users happy and streaming. A preventive step is “profile transfer” – which aims to preserve a password divider’s settings (personalized recommendations, viewing history, games) – when they launch their own paid membership, as described in a company blog post (opens in new tab).

Subscribe to something Kiplinger’s personal finances

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s free e-newsletters

Profit and thrive with Kiplinger’s best expert advice on investing, taxes, retirement, personal finance and more – straight to your email.

Profit and thrive with the best expert advice from Kiplinger – straight to your email.


Leave a Reply

Your email address will not be published.