Summary: Netflix is ending password sharing in 2023 in an effort to raise revenue after disappointing earnings reports. The company will block access to its platform for users logging in from outside the original account owner’s home and use IP addresses and device IDs to determine the location. A paid sharing feature will also be introduced where the original account owner can pay an additional fee for individuals outside of the household to use the account.
You’ve likely heard the news that Netflix is ending password sharing in 2023. Although the company has not confirmed the exact date the ban will take effect, it is expected to happen soon.
What is Netflix password sharing?
Password sharing is when someone allows others to use their Netflix account by giving them their login information. These individuals, often referred to as “freeloaders,” can enjoy almost the same privileges as the account owner who pays for the service.
In the past, Netflix was aware of and even encouraged password sharing among people living in the same household, such as parents sharing with their children or spouses. However, as users have taken advantage of the company’s lack of enforcement, password sharing has become widespread and extended to individuals outside of the household.
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Why is Netflix stopping password sharing?
The tech industry, including streaming services like Netflix, has been negatively affected by the post-pandemic situation. In response to disappointing earnings reports throughout 2022, Netflix is seeking to raise revenue by encouraging users to get their own accounts. The company has blamed its financial struggles on widespread password sharing and believes ending it will increase its revenue.
How will Netflix stop password sharing?
To encourage freeloaders to get their own accounts, Netflix will block access to its platform if a user tries to log in from outside the original account owner’s home. The company plans to use IP addresses and device IDs to determine the location of the device. If a user decides to get their own account, their device access will be unblocked and they can transfer their profile using the Profile Transfer feature released in 2022.
Netflix is also introducing a paid sharing feature where the original account owner can pay an additional fee for individuals outside of the household to continue using the account. The cost of this feature is not yet known, but it is expected to be less than the cost of having a separate account.
For those living in the same household but not all the time, they will need to log in through the home’s Wi-Fi once every 31 days to confirm their residency. If a user is traveling and wants to use Netflix, they can request a temporary password that will last for seven days.
The initial public reaction to this change has been negative, with many users indicating that if they cannot share passwords, they will not use the platform. In addition to ending password sharing, Netflix has also introduced a cheaper, ad-supported tier, which the company reports has performed well in its first few months.
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