January 27, 2023
Will Netflix Penalize Users Who Share Their Passwords?

Will Netflix Penalize Users Who Share Their Passwords?

Netflix plans to pause multiple users on a single account to end the practice of password sharing.

If it detects that customers are sharing their accounts with people outside their household — violating the streamer’s terms of service — it will begin nagging them to pay more.

Netflix plans to launch “a thoughtful approach to monetizing account sharing” in early 2023, expanding beyond its initial test markets in Latin America, the company announced in October. Password-sharers will be encouraged to create sub-accounts (“Extra Members”) and pay for people outside their households.

Although Netflix has not yet disclosed the cost of an additional member sub-account, that fee is reportedly 23-29 percent of the Netflix Standard two-stream plan in Chile, Costa Rica, and Peru, implying that sub-accounts in the United States could cost $3.50-$4.50 each.

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According to Variety, Netflix has notified members who appear to be sharing their account outside their household (as determined by data such as IP addresses, device IDs, and account activity from devices signed into the Netflix account) about the new payment options in the three test markets.

What other platforms prohibit users from sharing passwords?

Users of the OTT platform Disney+ cannot share their passwords, whereas Amazon Prime subscribers can share their accounts with another person.

Why won’t Netflix let users share passwords?

Netflix has identified password sharing as a key factor in declining subscriber numbers.

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