Netflix Password Sharing: What Do You Need To Know?
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Published on: 27 November 2023
Last Updated on: 22 January 2025
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Netflix announced on May 2023 that it would crack down on password sharing among multiple members of households. The company tweeted once, “Love is sharing a password.” Netflix has started cracking down on passwords in the United States and elsewhere as the company is looking to increase its revenue. A few months ago, the company faced a saturated streaming market.
In this article we will teach you password sharing and how it operates. Apart from that, you will also learn about why the Netflix password-sharing crackdown is a big deal. Next, we will discuss the company’s steps to limit password sharing. Finally, you will learn what steps you must take as a user to help in this regard. Hence, to learn more, read on through to the end of the article.
What Is Netflix Password Sharing?
Netflix password sharing is how Netflix users share a password with friends, family, and others. This process offers access to others. In earlier days, Netflix used to cast a blind eye toward password sharing. Moreover, it encouraged password sharing as well.
However, Netflix is now cracking down on password sharing. This is primarily because it wants its subscribers to pay extra to share accounts with family, friends, and outside households.
According to TechHive.com, “By early 2022, that growth had stalled, with Netflix reporting that its subscriber base had shrunk for the first time in a decade. Password sharing was partly to blame, the company said. […] a Los Angeles Times report estimates the practice may have cost streamer and pay-TV operators up to $9.1 billion in 2019, a figure that could balloon to $12.5 billion by 2024.”
Earlier, Netflix did not have a problem with its subscribers sharing passwords. In 2016, the Netflix CEO called the practice a “positive thing” since many password sharers got their accounts.
However, the streaming landscape changed dramatically in the last few years, especially after the pandemic. In earlier days, Netflix did not have problems with password sharing because there was no serious competition. Today, Netflix is up against other top streaming service providers like HBO Max, Paramount+, Disney+, Peacock, and Apple TV+.
Netflix Password Sharing Crackdown: Why Is It A Big Deal?
In May 2023, Netflix announced that it would no longer turn a blind eye to password sharing among households with multiple members.
According to USNews.com, “This kind of sharing has always been against its terms of service – to which users agree – but the company hadn’t enforced the policy. In that announcement, Netflix reminded users that their accounts are meant to be shared only among members of a single household and suggested they change their passwords and sign out on devices that shouldn’t have access to their account.”
As per new rules, Netflix is starting to enforce its new policy, and it is automatically logging out those people it considers not a part of the household paying for the membership. Each household must maintain a paid membership of Netflix.
However, if a particular household wants to pay an extra $7.99 per month, sharing accounts with someone who does not live with them is okay.
The video streaming company is slowly rolling out its password protocol worldwide. At first, it alerted US consumers who shared their accounts with others outside their households. They stated in a message that they are using the Netflix account for them and those living with them in the same household.
How Netflix Enforced The Crackdown?
According to Time.com, “With the new policy, only users who are part of a “Netflix Household”—those who are using the same internet connection—will be able to access the account unless they are paid additional users added onto a Standard or Premium plan. Those who are currently borrowing a Netflix password will get an update when they try to log in that tells them how to start their own account, the Washington Post reported.”
As per the statements of a Netflix spokesperson, if a particular viewer outside a subscriber household attempts to log in to the given account, they will receive a notification. The notification will prompt the person to either port the profile to a new account using Profile Transfer or choose to get added as an extra member to the existing account. This addition will come at an extra cost.
The company uses pieces of information, such as device IDs, IP addresses, and account activity, to determine whether a particular device is part of a household. It also insisted that it will not collect GPS data from users.
However, Netflix assured subscribers will still be able to access their accounts while traveling or using their devices, hotel devices, etc. It is still unclear how long Netflix will allow a particular device to remain logged in from a different location.
Netflix Password Sharing: What To Do As A User?
If you are a Netflix subscriber and use the $15.49/ month plan (Standard), consider adding an extra member outside the household with some extra money.
However, using the $19.99/month plan (Premium), you can consider adding two new members outside the household. You must pay $7.99/ month for an extra user in both cases.
According to Netflix, this additional user must have their profile, account, and password. However, the primary subscriber will need to pay for the subscription plan.
Furthermore, the added users must activate their accounts in the same country. Also, they can view or download content on only one device at a time.
Final Thoughts
This article was helpful for you in getting a better understanding of Netflix password sharing subsequently, how Netflix is cracking down on the practice throughout the world.
If you want to add another member outside the household, you must pay an extra $7.99 per month. Do you have any more information regarding Netflix’s crackdown? Share your info with us in the comments below.
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