Finally, it's here! Netflix has implemented a new policy that could result in you losing your friend's access to your account unless they pay to continue to share it. Netflix recently revealed the details of its measures designed to stop password sharing and the cost of adding additional users to your account.
You will have to pay an extra fee to add someone to your Netflix account if you share your account with a friend or family member who does not live with you. Last year, Netflix announced that it would crack down on password sharing to get a larger chunk of money from its viewers. The streaming service seems to be starting in one of its largest markets, the US.
You can now add an additional user to your Netflix Standard Plan for $16.49 monthly by paying $7.99 a month.
Suppose you have the Netflix Premium package with 4K streaming and want to add two additional users. In that case, you must pay an extra $7.99 for each user. These new rules do not only apply to the United States. Netflix subscribers in the United Kingdom are also charged PS4.99 per month for each extra user.
Netflix subscribers with the Basic or Standard Plans cannot add a second member to their account. Netflix is now emailing subscribers in the US that share passwords "outside of their household" about their new policy. What you can expect to see in your mailbox is shown below.
Netflix has also described the restrictions that apply to adding members. The extra member you add to your Netflix subscription must be in the same country and can only access content on a single device. You cannot also create an additional profile for them.
Netflix has been testing paid password sharing for a while now. In February, it expanded these tests to Canada, New Zealand, Portugal, and Spain. The crackdown on password-sharing was originally scheduled to go into effect in the US in January, but it was again postponed in April.
Netflix tweeted in 2017 that "Love is sharing a secret password." This tweet is still popular and can be seen on the official page. Netflix is trying to change how people share their accounts with friends and family.
In April 2022, Netflix revealed the company had lost subscribers for over a decade. Netflix claimed that password sharing was partially responsible at that time.
Netflix has observed a "cancel response" in countries where the company introduced paid password sharing. The company believes that implementing the policy in all countries will negatively impact the growth of its subscribers during the second quarter.
Netflix also highlighted the early results in Canada, where the number of paid subscribers increased compared to the period before the introduction of paid sharing. Netflix's co-CEO Greg Peters stated that the "cancel response" was just an initial reaction by subscribers. With time, more people would sign up for accounts.
Response of the Public to Netflix's Crackdown on Password Sharing
People are not happy with Netflix's crackdown regarding account sharing. Netflix is one of the most popular streaming services that is available all over the world. Apart from its content, its main attraction was being able to sign up for the service and share it with other people.
Because of this recent tactic, some of the years-old subscribers have canceled their accounts and have moved to other platforms that don't have a problem with account sharing, like Hulu, Disney+, and more.
Moreover, users are also complaining about the price of adding an extra account, saying $7.99 per month per person is a bit steep.
According to Netflix, it lost over one million users in Spain in the first quarter of 2023. Despite such results, the company has decided to push forward its crackdown on password-sharing in the US and other major markets.
So what comes next? Netflix has already used different tactics to pull subscriber growth, such as introducing its ads plan. Netflix's faced increased competition in the US due to a recent shift in the streaming niche.
For instance, HBO Max has rebranded into Max, a new service combining HBO and Discovery+ content. In June, Paramount+ is adding Showtime to its service. Meanwhile, Disney plans to combine Hulu and Disney+ into one app. These changes will surely come with a price increase. Still, unlike Netflix, which asks subscribers to pay more for the same content, users get additional content from different channels.
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