The crackdown will begin globally sometime from the end of March.
Popular streaming service Netflix is planning to put an end to password sharing from early 2023, with the practice of sharing passwords across multiple households likely to attract an additional fee.
In a report sent to shareholders last week, the streamer said: “While our terms of use limit use of Netflix to a household, we recognise this is a change for members who share their account more broadly.”
It continued: “As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with. As is the case today, all members will be able to watch while travelling, whether on a TV or mobile device.”
Based on a trial of the new rules in selected Central and South American countries in 2022, Netflix said it anticipated a negative impact in the short term.
“As we work through this transition – and as some borrowers stop watching either because they don’t convert to extra members or full paying accounts – near term engagement, as measured by third parties, like Nielsen’s The Gauge, could be negatively impacted,” the statement said.
“However, we believe the pattern will be similar to what we’ve seen in Latin America, with engagement growing over time as we continue to deliver a great slate of programming and borrowers sign up for their own accounts.”
It comes after Netflix was projected to have lost around 500,000 UK subscribers in 2022, according to research firm Ampere Analysis.
Netflix – home to hit shows such as Squid Game and The Crown – blamed losses last year on a number of factors including the war in Ukraine as well as rivals such as Apple and Disney Plus chipping away at its audience with their own streaming platforms.
What are the rules for Netflix password sharing in the UK?
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Under the new rules, only one home device will be allowed on a single Netflix account, but can be used across multiple devices.
For multi-household use, an additional monthly fee will apply. Last year’s trials conducted by Netflix in a number of Central and South American companies saw multi-household password sharers paying an extra £2.40 a month.
Subscribers will likely have no restrictions placed on mobile devices, tablets or laptops while travelling.
When will the new UK rules for password sharing begin?
Netflix said the crackdown would begin globally sometime from the end of March.
An exact date for the UK or any other country is yet to be announced.
How will Netflix stop password sharing?
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The new rules will rely on a combination of technology and user trust to prompt users sharing passwords across households to pay an additional fee for the privilege.
Netflix will likely use an account holder’s geographic location to figure out which people count as household members who live together.
This was the case in last year’s trials in Latin America, which saw the account holder receive an in-app notification if a change in location of the account being used was detected for more than two weeks, prompting them to either change their household address or pay a fee to add the new address.
In an interview with Variety on 19th January 2023, Netflix co-CEO Greg Peters said the crackdown would “not be a universally popular move” and that the company would introduce the new rules by giving users who continue to share accounts “a gentle nudge” to pay an additional fee for multi-household use.
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