Netflix

Netflix to remove free password sharing by end of March

WHAT YOU NEED TO KNOW:


  • Netflix said that over 100 million users share their accounts with people outside their households, violating their terms of use.
  • The streaming giant said that such activity “undermines” its ability to invest and improve.
  • The company said that it will start charging on such broad sharing by the end of March.

Netflix will be cracking down on free password sharing by the end of March, according to a shareholder letter distributed late last week.

Netflix previously announced its plans to change its password-sharing policy back in October. The streaming giant said that it would eventually start charging users who share their account passwords with people outside of their households, but did not give a specific date on when the new policy will take effect.

In the shareholder letter, the company said that it would start charging “later in Q1 [quarter one].”

“While our terms of use limit use of Netflix to a household, we recognize this is a change for members who share their account more broadly,” the company stated. “So we’ve worked hard to build additional new features that improve the Netflix experience, including the ability for members to review which devices are using their account and to transfer a profile to a new account.”

Netflix said that with over 100 million users sharing their accounts more broadly than their households, such activity “undermines” its ability to invest and improve.

The company described 2022 as a “tough” year, having lost 200,000 subscribers in the first quarter of last year — its first subscriber loss in over a decade.

The company continued that the year ended on a “brighter finish” despite the early losses. It attributed its fourth-quarter revenue, operating profit, and membership growth to series and films that “outperformed” its expectations.

Netflix acknowledged that the planned crackdown on password sharing will possibly cause “near-term engagement, as measured by third parties like Nielsen’s The Gauge,” to be “negatively impacted.”

To combat this, the company plans to launch a lower-priced ad-supported plan in November to attract “incremental membership growth.”

Netflix stated, “We believe we have a clear path to reaccelerate our revenue growth: continuing to improve all aspects of Netflix, launching paid sharing, and building our ads offering.”

Source: CBS News

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10 thoughts on “Netflix to remove free password sharing by end of March

  1. Netflix has different levels of service, based on how many screens can stream their product at one time under a single account. There are no time limits on how long those screens can be active. So, if I’m paying the basic price for one screen, should it matter where that screen is located? If I pay for two, or four, why should it matter where those screens are? The company is offering streaming on one or more screens, so how does password sharing actually harm them? If I only pay for one screen that can stream at one time, that means that my brother, sister, mother, or whomever else has access to my account can only watch it if I am not. It should be that this limitation alone should prevent Netflix from losing money on their service.

  2. I frequently visit family in Va. and Alabama and Florida. When I visit I use their internet provider. I don’t know if this shows up as an “outside of home” use or not. I am away from home but still using my Netflix account.

  3. If I am paying for the pleasure of being able to use four screens to view my programs, why should it matter where I watch them? I have a vacation home and a shop with a tv in it across the street from my house. If I can’t view Netflix outside of my home then NETFLIX can shove it. There are other streaming platforms.

  4. I’m paying for up to four devices. Where they are located is my business. I’ve canceled my service before and survived just fine. And I WILL cancel again. Don’t believe me? Try me.

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