Netflix password sharing to be stopped? What we know so far

New details have emerged about Netflix's move to prevent members from sharing their passwords outside of their households. According to the "Sharing your Netflix account" pages on the company's Help Center for Costa Rica, Chile, and Peru, only those who reside at the primary location are permitted to use a Netflix account.

Individuals who do not fall under Netflix's definition of a household must get their own account. Alternatively, the account owner can add them as an "extra member," as stated on the company's Help Center pages. Adding an "extra member" to a standard or premium plan account is less expensive than the cost of a basic plan, according to the Help Center pages.

The monthly fee for the "extra member" will be charged to the account owner. Netflix uses IP addresses, device IDs, and account activity to identify devices linked to an account's primary location. If the account is accessed from a device not located at the primary location or if persistent access from another location is detected, that device may be blocked from accessing Netflix.


In order to link a device to a main location, users must connect to the primary location's Wi-Fi, access the Netflix app or website, and watch something on the platform at least once every 31 days, according to the Help Center page. This enables users to stream content while not at the primary location on what are called "trusted devices".

In a shareholder letter, dated January 19, 2023, Netflix reported that over 100 million households engage in account sharing, which it believes detracts from its ability to improve the platform and grow the business. The company plans to launch a paid sharing system in the first quarter of 2023 that will expand more broadly.

Netflix acknowledges that there may be a negative impact on near term engagement as the paid-sharing system is rolled out and some users choose to stop using the platform instead of creating their own accounts or becoming extra members. However, the company anticipates that engagement will grow over time.

FAQs:

1. How much does Netflix subscription cost?
   It starts at $6.99 per month.
2. How many users does Netflix have, worldwide?
   About 230.75 million, as per Q4 2022.