Sharing Is Caring: How Netflix Will Tackle Password Sharing

The streaming platform cracks down on password sharing among its users.

Netflix has released its plans for curbing password sharing among over 100 million households.

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In its January 19 letter to shareholders, Netflix detailed how it will implement its crackdown on password sharing by the end of March.

“[W]e expect to roll out paid sharing more broadly later in Q1’23… We anticipate that this will result in a very different quarterly paid net adds pattern in 2023, with paid net adds likely to be greater in Q2’23 than in Q1’23,” the letter read.

Moreover, Netflix said that it expects short-term membership cancelations that will eventually turn up as more subscribers join.

“From our experience in Latin America, we expect some cancel reaction in each market when we roll out paid sharing, which impacts near-term member growth. But as borrower households begin to activate their own standalone accounts and extra member accounts are added, we expect to see improved overall revenue, which is our goal with all plan and pricing changes,” the letter read.

Guidelines

Netflix also clarified how it will implement password sharing among flexible households: “While our terms of use limit the use of Netflix to a household, we recognize this is a change for members who share their account more broadly. 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. As we roll out 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 will be able to watch while traveling, whether on a TV or mobile device.”

Banner Photo by Tumisu from Pixabay.