Netflix is moving forward with their plan to regulate password sharing. A little over a year after they first announced the idea, and the public outcry that followed, the streaming giant will now charge extra for anyone using the same account that’s not in the same household. Womp, womp.
As part of the stricter guidelines, NPR reports that account holders can add people outside of their household for an extra charge of $7.99 per month. Or, users can use the “transfer profile”option to create their own account and pay for it separately.
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These changes shouldn’t affect those in a single household who are traveling and using their account.
A year ago, when they first announced their intention to crack down on password sharing, Netflix cited that password sharing has resulted in, “impacting our ability to invest in great new TV and films for our members.” So, even though features such as multiple profiles encouraged account sharing, that’s no longer the case. The company reports that over 100 million households participate in password sharing.
The new plan was first tested in international markets before being implemented here in the US. Chile, Costa Rica and Peru in 2022 and Canada, New Zealand and Portugal in 2023. In a letter to shareholders, they claim that it had positive effects.
The letter states, “As with Latin America, we see a cancel reaction in each market when we announce the news, which impacts near term member growth. But as borrowers start to activate their own accounts and existing members add ‘extra member’ accounts, we see increased acquisition and revenue.”
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Of course, that doesn’t account for the dozens of households who are extremely unhappy. Here are a few comments that basically represent what we’re all feeling.
According to the streaming company, emails outlining these changes started going out to anyone considered “out-of-household” on Tuesday.
Their website defines one household as: “A Netflix Household is a collection of the devices connected to the internet at the main place you watch Netflix. A Netflix Household can be set using a TV device. All other devices that use your Netflix account on the same internet connection as this TV will automatically be part of your Netflix Household.”