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Netflix to Begin Cracking Down on Password Sharing in Early 2023

Draugoth

Gold Member


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Netflix has long known that password sharing is a problem affecting its profits, but the uptick in subscriptions in 2020 allowed the company to avoid addressing it. With revenue falling this year and Netflix's first subscriber loss in 10 years, Netflix CEO Reed Hastings decided it was time to act on the issue, which had been put off for too long.

Starting in 2023, Netflix plans to ask people who share accounts with others outside of their household to pay to do so. Netflix has been testing add-on payments for password sharing in some Latin American countries, charging around $3 extra. In these countries, the primary account owner must provide a verification code to anyone outside the household who wants to access the account, with Netflix repeatedly asking for the code until a monthly fee is paid to add non-household subscribers.

A similar tactic could be used in the United States, with Netflix possibly charging just below the cost of its $6.99 ad-supported plan for non-household subscribers who share someone's plan. Netflix wants those who have a shared password to sign up for their own subscription.

Netflix will enforce password sharing rules through IP addresses, device IDs, and account activity. To keep from alienating customers, Netflix may slowly phase out password sharing rather than putting a stop to it all at once. One method Netflix reportedly considered was adding pay-per-view content that could make users not want to share their passwords with people who might rent content, but Netflix ultimately decided against it.

The Netflix terms of service have never allowed for multi-household sharing, but Netflix has looked the other way for so long that implementing fees for offering account access to friends and family could upset some of its subscribers. An estimated 222 million paying households share passwords with an additional 100 million households that Netflix wants to monetize.

Pricing on Netflix plans includes watching on multiple supported devices in addition to affecting streaming quality, but Netflix does not want multiple viewers watching outside of the same household. Netflix's premium plan, for example, allows for Ultra HD 4K streaming and support for watching on four supported devices like iPhones, iPads, and Macs at one time, as long as those devices are owned by people in the same household.

In addition to boosting revenue by eliminating password sharing, Netflix has also introduced a more affordable ad-supported tier that is priced at $6.99 per month in the United States.
 

Reallink

Member
Well bye then.

How to kill your business.

Piss of consumers.

Not really, their operation costs will plummet and long term they'll pick up FAR more people who will begrudgingly choose to pay for their own subs than they will lose to hate cancelers. The number of people who "legitimately share" by splitting the payment is infinitesimal, they'll convert 10x more freeloaders to paying customers. They also won't have to waste money streaming 4K HDR to freeloaders.
 
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Kenpachii

Member
Not really, their operation costs will plummet and long term they'll pick up FAR more people who will begrudgingly choose to pay for their own subs than they will lose to hate cancelers. The number of people who "legitimately share" by splitting the payment is infinitesimal, they'll convert 10x more freeloaders to paying customers. They also won't have to waste money streaming 4K HDR to freeloaders.

Nvm though it where multiple accounts or something.
 
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nush

Gold Member
Can they not fix it so that only one account is logged in at a time? That's how it works on console game accounts.

It's a risky move, forcing people to pay for Netflix that were not paying before. Those people could well decide to pay for another streaming service instead if it's more attractive to them.
 

Nobody_Important

“Aww, it’s so...average,” she said to him in a cold brick of passion
How are they consumers?
The people who share their accounts or split the subscription with others are also consumers. Netflix trying to suddenly charge them for something they have been doing for ages FOR FREE while also dealing with the blowback from people they were sharing with? Combine that with the repeated cancellations, the lack of quality content, and the rise of other services?


This is the first step towards the edge for them and I honestly can't believe they are dumb enough to make it. Netflix is fucked.
 
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nush

Gold Member
Fuck that lol

So glad I cancelled my sub awhile ago when they were busy cancelling all their best stuff.

The people who share their accounts or split the subscription with others are also consumers. Netflix trying to suddenly charge them for something they have been doing for ages FOR FREE while also dealing with the blowback from people they were sharing with? Combine that with the repeated cancellations, the lack of quality content, and the rise of other services?


This is the first step towards the edge for them and I honestly can't believe they are dumb enough to make it. Netflix is fucked.


Tell me you benefit from password sharing, without telling me you benefit from password sharing.

We all know you cancelled because they raised the cost of a sub for less than the price of a cup of coffee at Starbucks.
 

Tieno

Member
The people who share their accounts or split the subscription with others are are consumers. Netflix trying to suddenly charge them for something they have been doing for ages FOR FREE while also dealing with the blowback from people they were sharing with? Combine that with the repeated cancellations, the lack of quality content, and the rise of other services?


This is the first step towards the edge for them and I honestly can't believe they are dumb enough to make it. Netflix is fucked.
I see your point, that people can be 'angry' about something free being taken away...but I don't find it unreasonable to not pay that much attention to the 'good will' (whatever that's worth from free loaders) and those concerns.
 

xrnzaaas

Gold Member
So let me get this straight - it's not only a war against those who share accounts (that still would've been a lost cause), but also making it more difficult for people who stream outside of their household (like when they're travelling)? This is gonna be a nice trainwreck.
 

6502

Member
There is not much quality on Netflix anymore, tbh if it wasn't for sharing and having family devices using it while travelling I would cancel it.

Make that a problem where people are ringing me for codes, then it will be bye bye Netflix.

But I am sure it will work out. Just as DRM on Xbox one helped them dominate ps4.
 
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jason10mm

Gold Member
Not really, their operation costs will plummet and long term they'll pick up FAR more people who will begrudgingly choose to pay for their own subs than they will lose to hate cancelers. The number of people who "legitimately share" by splitting the payment is infinitesimal, they'll convert 10x more freeloaders to paying customers. They also won't have to waste money streaming 4K HDR to freeloaders.
I don't think that will happen as much as they hope. Once you turn off one of these streaming services for like a week it's pretty easy to just ignore it forever. There are very few "OMG must watch!" things on these services and netflix in particular is pretty "sub and binge"able IMHO. I think trying to cut off 1/3rd of the folks watching (most likely younger folks sponging off their parents, would be my guess) will just drive 'buzz' for any netflix show even lower.
 

Trunx81

Member
Password sharing. Who even does this? Who thinks it is ok to do it? Crooks, that is who. This is the only thing Netflix is doing that I am ok with.
Not really. Got the highest Netflix fare, that allows up to 4 people (rules say ‘in a household’, yes, but Netflix even supported sharing back in the days) and we share the costs equally. Saves everyone just a few bucks, but we have a society!
 

Jaybe

Member
I’m still looking for Netflix to provide a ‘4K 1 screen’ option. They justify the high price of their premium level with 4 screens and then are shocked when people want to share the excess they were made to purchase with others.
 

Panajev2001a

GAF's Pleasant Genius
I’m still looking for Netflix to provide a ‘4K 1 screen’ option. They justify the high price of their premium level with 4 screens and then are shocked when people want to share the excess they were made to purchase with others.
Netflix is starting to follow the old cable provider playbook… keep adding theoretical value beyond people’s ability to extract it to justify increasing prices.
 

Lasha

Member
I think charging for sharing is a smart way to drive up revenue. The person paying the bill every month is Netflix's customer. Subscribers already think Netflix is worth the price. Most people leeching off an account are not compensating the subscriber. It's friends sharing. Accounts from severed relationships. People like me who have been on their parents Netflix since the service went live. All Netflix has to do is find a way to monetize some fraction of leechers without disrupting the experience of its existing customers.
 

LordCBH

Member
This won’t be the W Netflix thinks it will. Netflix 6 months from now: “why have half our subscribers canceled?” while they release yet another live action adaptation that bombs spectacularly.
 

Thaedolus

Member
Netflix is included in T-Mobile, and as of earlier last week, Verizon as well
Wait what? Hadn’t heard that, that would be nice.

My family and friends all share passwords. Calling my mom to get an HBO or Xfinity 2FA code, or my dad doing the same to me so he can watch Willow on our Disney+ account is like a new Christmas tradition.
 

Fbh

Member
I'm in one of the countries where they beta tested this.
They were supposed to begin cracking down on it in like April but it wasn't until like 3 weeks ago that we got the notice.
We paid, it's still cheaper for my sister to get an extra account and us to split the cost than each of us to get a completely separate account
 

Akuza89

Member
Genius move....if you want your viewership to drop!

I can see why they're doing this, along with offering a less costly/free tier (eventually), they want to increase revenue... just not this way?

Maybe look at making better content, wednesday was the last good thing i've turned netflix on for.. (granted alice in borderland seasons 2 just dropped..)
 

Cyberpunkd

Gold Member
Maybe look at making better content, wednesday was the last good thing i've turned netflix on for.. (granted alice in borderland seasons 2 just dropped..)
But what’s the point if people will just continue to password share to watch the new content?
 
I don't think this will be the massive drain on the subscriber base that the leechers here think it will impact. The nag screen will be annoying but adding additional users will still be cheaper. I've downgraded my 4k family plan to a single 1080p screen since I usually watch on mobile and my family will need to be added as extra users later.
 

poppabk

Cheeks Spread for Digital Only Future
I can see why they want to do this, but it is their own fault for structuring their tiers like they have. Seperate out number of screens and resolution and this problem practically solves itself. Not sure how they will pull this off without pissing off people like me who travel.
 

Nobody_Important

“Aww, it’s so...average,” she said to him in a cold brick of passion
I cannot believe people are honestly advocating companies to give their products for free.
I'm not saying give it away for free. I'm saying that cracking down on password sharing is dumb and it will backfire on them.
 
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