Netflix To Clamp Down On Password Sharing By Q1 Of 2023

By   Adeola Adegunwa
Writer , Informationsecuritybuzz | Jan 29, 2023 08:45 am PST

Netflix wants to stop people from sharing their passwords, which will be pretty upsetting for its customer who shares passwords, especially those who don’t live with you. However, the streaming service meant business this time. The company lost 200,000 customers in Q1 2022. It was the streaming service’s first subscriber decline in ten years. The streaming service released the information in a letter to shareholders.

Without a doubt that Netflix will carry out its promises to reduce password sharing between households, that doubt is gone. How will Netflix, though, prevent password sharing? This time, the streaming service involves money. If Netflix discovers password sharing, it won’t remove the offending profiles from the main account. It will merely require the account holder to make a payment.

Although the company observed an increase in memberships in Q3 2022, it plans to continue its crackdown on password sharing in 2023. The Wall Street Journal reports that the streamer plans to crack down on account sharing in 2023. According to the company’s fourth-quarter earnings letter, these measures to reduce sharing will start in the first quarter of the year. Here are the most recent developments in Netflix’s campaign to prevent account and password sharing.

Netflix’s Plan To Prevent Password Sharing Will Result In

More Fees.

Various reports say that Netflix is experimenting with charging more for accounts with profiles in several households. Its testing grounds are Chile, Costa Rica, and Peru, where the test was first conducted. It is now testing the idea, but it may eventually spread to all of its markets.

According to reports, Netflix will provide a mechanism to “simply and securely” continue sharing the account for a modest fee for accounts with users from other houses. Account holders have the option to add up to two friends who do not live with them by using the “add an extra member” feature. A monthly surcharge of $2.99 will also apply.

That’s unquestionably better than requiring someone to open a brand-new account. For what it’s worth, however, Netflix is already one of them, so it makes sense why people would be inclined to share passwords. In the US, its premium subscription now costs $19.99. (As a point of comparison, a month of Amazon Prime video costs $8.99.) following recent price increases.

A function that enables a profile transfer to either a brand-new account or an account for a “extra member” will also be made available by the company for those who realize the time has come in any case. So that someone’s years of curating won’t be lost if they move their profile.

Visible Changes To Netflix Profiles

Netflix has offered the option of a simple profile transfer to help users prepare for an impending crackdown. This makes it simple for any profile on a given account to become its own account. According to a statement from Netflix:

We’re introducing Profile Transfer, a tool that will allow users of your account to transfer a profile when they start their own membership while retaining the customized recommendations, viewing history, My List, saved games, and other preferences.

In addition, Netflix advises users to “just follow the instructions” after selecting the “Transfer Profile” option from the dropdown menu that appears when they hover over their profile icons on the homepage. Supposedly, this function politely requests that users who share accounts easily form their own… before there are consequences. This function is currently widely accessible.

Netflix Allows You To Log Out of Each Device

Along with Profile Transfers, Netflix just launched a new tool that allows users to log out of specific devices. It is a “new tool in Account Settings that allows you to check all the recent devices that have streamed from your account and to log out of certain devices with just one click.” It is named “Managing Access and Devices.”

It is ostensibly there if you need to log out of a computer or other device that you have only briefly used. The latest upgrade is also part of Netflix’s ongoing effort to reduce password sharing.

This is a significant leap from a corporation that apparently spent $400 million on the Knives Out sequels. and will release over 86 original films this year. However, Netflix contends that password sharing keeps them from investing in premium content in a blog post published by the corporation.

“We’ve always made it simple for people who live together to share their account, with features like separate profiles and multiple streams in our Standard and Premium plans,” said Chengyi Long, the company’s head of product innovation. Despite their immense popularity, these have also led to certain misunderstandings around the appropriate times and methods for sharing Netflix. As a result, accounts are being split between families, affecting our capacity to provide our subscribers with excellent new TV and movies.

Additionally, it was revealed in the Netflix shareholder letter that more than 100 million homes share passwords. Mainly, 30 million US and Canadian homes exchange passwords. This is a challenge for the streaming service. And declining subscriber numbers could be the boost they need.

How Will Customers React To Netflix’s Efforts To Prevent Password Sharing?

All of this serves to argue that The Baby-Sitters Club’s untimely end on Netflix was caused by password sharing. We are unable to believe that is actually the case. The announcement comes at a particularly stressful time for streaming services generally. Almost every significant studio with a distribution division has one.

Disney has three and recently reclaimed its Defenders Saga from Netflix. With Disney+, that firm will make some significant steps in the coming months. In a relatively short period of time, Disney+ has incorporated parental controls and ad-supported pricing. Then there is Paramount, a building with two wings. Prime Video, HBO Max, Apple TV+, and countless others still need to be mentioned.

In the past, sharing and exchanging passwords has made life simpler. It’s getting to the point where subscribers pay a lot each month to stay current. According to Netflix, this decision might take time to be well-received. According to the business, “Based on our experience in Latin America, we expect some cancel reaction when we roll out paid sharing in each area, which has an immediate impact on member growth. However, suppose additional member accounts are added, and borrower households start to activate their own standalone accounts.

In that case, we anticipate better overall revenue, which is our aim with any plan and pricing changes. Who knows, maybe Netflix and other streamers’ crackdowns on password sharing may finally make users consider how much they really need a particular site. Or perhaps it will perform just as the business anticipates.


The free password sharing for Netflix is about to end: It will implement a system that adds costs for “extra member” sub-accounts when people outside of one household use the membership and will start charging accounts for password sharing in roughly two months. Last year, the company began experimenting with ” monetizing account sharing” after experiencing its largest subscriber losses in a decade after having been relatively permissive about password sharing for years. In addition to the password-sharing fines, Netflix has also introduced more affordable subscription plans sponsored by advertising in an effort to get more people to subscribe.

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Jake Moore
Jake Moore , Global Cyber Security Advisor
InfoSec Expert
January 30, 2023 2:23 pm

Although this is financially motived to improve business, it is a tough reminder to all those who share passwords that this is not the intention nor is it recommended to users for any accounts online. Sharing passwords or reusing passwords can have very dangerous consequences and cause problems such as being locked out of accounts or having money stolen from bank accounts. It may sound frivolously easy to share a password with a loved one or friend but the ramifications of this can outweigh the initial help. This may be a hard lesson but it will in time help remind people about the dangers of sharing and reusing passwords. With the minority still not using a password manager or two factor authentication, this may be the first step towards making people’s accounts more secure across the internet.”

Last edited 7 months ago by Jake Moore

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