A new era of Netflix is on the horizon.
After 15 years in the game, the streaming giant is finally taking the first steps to crack down on its password sharing epidemic, which means it’s going to get a lot harder to use your college roommate’s best friend’s ex-girlfriend’s account. Gone are the days when password sharing was just something co-CEO Reed Hastings said the company would have to “learn to live with.” Now, it’ll cost you.
Times have been tough for the once streaming juggernaut, which saw the loss of 200,000 subscribers in Q1 of 2022 and a total of 1.17 million at the six-month mark. Many believed Netflix’s reign was at an end, especially given the sustained performance of powerhouse platforms like Disney Plus, Hulu, and HBO Max. However, thanks in large part to the addition of enormously popular shows like season four of Stranger Things and Ryan Murphy’s Dahmer—Monster: The Jeffrey Dahmer Story, 2.4 million new subscribers have jumped back on the Netflix train.
Just in time, too, as Netflix recently announced its new ad-supported membership plan for all those who don’t wish to lighten the weight of their wallets amid holiday season. The plan will go into effect on Nov. 3 of this year, and shortly thereafter, the crackdown on password sharing will begin.
When does the password sharing crackdown begin, and what will it mean for you?
Earlier this year, Netflix revealed that 100 million households across the world were accessing the platform through shared passwords, including 30 million in the U.S. and Canada. While those numbers are relatively consistent with past figures, it carried extra weight given the heavy loss of subscribers in Q1 and Q2.
Beginning in early 2023, Netflix will require members to pay slightly more to add an “extra member” to their plan. The company has not stated how much the addition will cost, nor how it will implement the crackdown, but if it’s similar to the test roll out done in Peru earlier this year then users will be asked to validate their accounts and pay an extra $3 USD to add a member if need be. Only users with Standard and Premium plans will have the ability to add an extra member.
Netflix will also offer the ability to transfer a profile to either a new account or an Extra Member sub account without losing any viewing history or personalized lists, dubbed Profile Transfer. The initiative went into effect on Oct. 17 and paves the way for what will be Netflix’s biggest password sharing crackdown to date.