Netflix

Netflix’s crackdown on password sharing could be coming sooner than you think

Netflix has announced when its crackdown on password sharing will go into effect.

The streaming giant announced the news that countless freeloaders have feared in a letter to shareholders this week, following the release of its earnings report last week.

According to the company, “widespread account sharing” has surpassed 100 million viewers, and the crackdown comes after the service announced consecutive subscriber losses over the past year.

In the first quarter of 2022, the company’s customer base decreased by 200,000 subscribers.

Password sharing is set to end in March.  Credit: Marcel de Grijs / Alamy Stock Photo
Password sharing is set to end in March. Credit: Marcel de Grijs / Alamy Stock Photo

However, there is a way for those who enjoyed shows like The crown, Squid Game and Bridgeton to continue doing this by transferring their profiles with all their viewing preferences to a new paid account.

“While our Terms of Service limit Netflix usage to one household, we recognize that this is a change for members who share their accounts more broadly,” Netflix said in its letter to shareholders.

“With the introduction of paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with. As is the case today, all members can watch TV on the go, whether on a TV or mobile device.”

Netflix acknowledges that the change could result in some people terminating their accounts altogether when the crackdown takes effect in late March 2023.

People are offered the opportunity to set up their own accounts.  Credit: Aleksandar Ilic / Alamy Stock Photo
People are offered the opportunity to set up their own accounts. Credit: Aleksandar Ilic / Alamy Stock Photo

“As we work through this transition — and some borrowers stop watching because they either don’t move to additional members or full-paying accounts — short-term exposure, as measured by third parties such as Nielsen’s The Gauge, could be negatively impacted.”

LADbible has reached out to Netflix for comment.

A trial was conducted in Latin America last year as the streaming service looked for ways to stop piggybackers. “We believe the pattern will be similar to what we have seen in Latin America, with engagement increasing over time as we continue to deliver a wide variety of programs and borrowers sign up for their own accounts,” the statement continued away.

People in the same household need not worry about the chance.  Credit: PhotoAlto / Alamy Stock Photo
People in the same household need not worry about the chance. Credit: PhotoAlto / Alamy Stock Photo

Password sharing has been the bee in the hood of Netflix for quite some time.

According to The Wall Street Journal, Netflix identified password sharing as a major problem back in 2019, but didn’t know how to approach it without scaring people away.

After all, their goal is to crack down on people who share passwords to get more subscribers on their platform, not evict those who are already paying a few pounds a month.

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