It’s official: Netflix will start charging its users for sharing their passwords with someone outside of their household. The streamer has already begun to charge users in parts of Central and South America and now plans to roll out the change globally in the first half of 2023. This move comes as the company’s slate of new and returning shows includes the psychological thriller You, starring Penn Badgley.
In an earnings letter this week, Netflix acknowledged that this change will affect those who share their accounts more broadly, saying, “While our terms of use limit use of Netflix to a household, we recognize this is a change for members who share their account more broadly.” Co-CEO Greg Peters elaborated on the changes by explaining that Netflix wants to give these users “a little bit of a nudge” and make it easy for them to transition from one account to another.
The UK’s Intellectual Property Office (IPO) has previously stated that password sharing is technically illegal due to copyright law. Still, Netflix claims they have no intention to take legal action against users who share passwords. Instead, they will offer an extra monthly charge for those wishing to continue sharing their accounts with friends or family outside their household. The exact cost has yet to be announced, but most speculate it will be around £3 or less per month.
In recent months, Netflix has also tried encouraging users to create individual accounts rather than using shared ones. To do this, they have introduced new options, such as allowing people who are no longer living together to ‘boot’ each other from shared accounts and launch cheaper plans with ads. The latest figures suggest there are approximately 13.7 million subscribers in the UK – down 500,000 from last year – so these efforts may be paying off soon enough.
Netflix’s decision to start charging for password sharing highlights its commitment to protecting content and maintaining its position as one of the world’s leading streaming services – something many consumers expect from them, given its wide range of exclusive titles and quality content available for all ages. With upcoming plans already in motion, it seems likely that those looking forward to watching shows like You can expect a few changes when it comes time for them to sign up or renew their subscriptions with Netflix.
