When will Netflix start charging for password sharing?

(NEXSTAR) – Whether you’re sharing a Netflix password with someone or borrowing theirs, be prepared to start paying for it. The streaming giant is warning that a crackdown on password sharing is coming, and it looks like they’re almost ready to introduce some new rules.

IN letter to shareholders Last week, Netflix said it expects to roll out paid account sharing “more widely” by the end of the first quarter of 2023. Netflix estimates that more than 100 million households share accounts, which “undermines our long-term ability to invest in and improve Netflix .”

Executives explain in the letter that they expect some users to close their accounts when paid sharing is launched, but that “borrowing households” will open their own accounts.

It is not yet known how paid password sharing will be implemented and how much it will cost.

The features Netflix tested in Latin America last March cost roughly $3 or $4. During last week’s earnings call, COO and chief product officer Greg Peters said the company is working to find “the right price points.”

Netflix was already exploring ways to overcome password sharing in 2021 when tests a login verification process. If a user the company suspects is not the account owner tries to sign in, Netflix will send a code via email or text message to the account owner. This code had to be entered within a certain period of time or the user would not be able to access the service.

In March 2022 Netflix started testing two new features – one that allows members to add a sub-account for people living outside their household for a small fee, and the second that allows users who share an account to transfer their profile information to a new account or sub-account – in Chile, Costa Rica and Peru.

In these countries Netflix warns that devices connecting to your account from outside your household may be blocked. Netflix i can discovering devices outside your home using information such as “IP addresses, device IDs, and account activity from devices signed in to the Netflix account.”

A month later, leaders again hinted at reprisals blaming password sharingas well as increased competition from other streaming services for it first subscriber loss after more than a decade.

In July, Netflix tested a separate feature in another round of countries that allows users to buy additional “homes” to use a TV or TV-connected device outside of their household, The Verge reports. Users can purchase an additional “home” to allow users to access Netflix outside of their home. Any TVs that weren’t connected to the extra home were locked out after two weeks, Netflix said.

Then, in November, Netflix a new function is started allowing you to view devices that have streamed from your account and log out of those you don’t want to access “with just one click”. While Netflix suggested using the sign-out feature on a hotel TV or a friend’s device while traveling for the holidays, you can also remove any device using your login.

Netflix’s move to address password sharing is a change from the company’s previous view of the common practice. Then-CEO Reid Hastings (he stepped down as CEO last week) said in 2016 that Netflix would not charge users for sharing their passwords. Instead, he called password sharing “something you have to learn to live with.” reports CNBC.

Hastings has also never been a fan of ads, calling them a distraction from the fun the service offers. But in November, Netflix launched a fourth plan, “Mainly with ads,” which includes “an average of 4 to 5 minutes of ads per hour.” Users of this plan too have no access to the full Netflix library.

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