In a bid to curb the widespread practice of password sharing. Netflix has implemented a new policy that charges $8 for adding someone outside of the account holder’s household to their streaming service. This move marks a significant decision by the popular streaming platform. Signaling a departure from its previously lenient stance on the issue.
Previously, Netflix allowed subscribers to share their passwords freely. Resulting in an estimated 100 million people worldwide taking advantage of the practice. However, with the increasing prevalence of account sharing, Netflix has decided to take action. The company is now notifying users that they will need to pay an additional $8 per month for viewers outside their households.
Under the new policy of Netflix account sharing, a standard account allows for the addition of one extra member. While the premium tier permits up to two additional members. Alternatively, users can convert existing profiles into separate paying accounts for extra members. This change applies to subscribers in Portugal, New Zealand, Canada, and Spain initially.
However, it’s worth noting that Netflix subscribers can still access their accounts while traveling. This provision ensures that users can enjoy their favorite shows and movies even when they are away from home. With approximately 70 million American subscribers, Netflix’s decision to crack down on password sharing will have a considerable impact.
Previously, Netflix had little incentive to tackle the issue of password sharing. As its revenue largely stemmed from its substantial base of paying subscribers. However, as the problem persisted and the number of freeloaders grew, the company recognized the need to take action. This move aims to protect the integrity of Netflix’s service and ensure that those who enjoy its content are legitimate paying customers.
While not all subscribers have received notification emails yet, Netflix plans to enforce the new policy soon. Devices associated with accounts that violate the policy will likely be disconnected after a 31-day grace period.
Ultimately, Netflix’s decision to charge for password sharing represents a strategic move to safeguard its revenue streams and maintain a fair user experience. By implementing this policy, the streaming giant aims to strike a balance between accommodating legitimate account sharing within households while discouraging widespread abuse of the system.