Netflix moves forward with password-sharing crackdown in U.S.
The news you’ve all been waiting for: Netflix really is putting an end to password sharing.
Last year, the streaming company announced it would start to charge customers who were sharing passwords a separate fee for each profile outside of the home, but has since been quiet on the subject until recently.
It was expected to start in the U.S. by March of this year but has been delayed because of several “improvement opportunities” found while testing the program in other countries, reported Forbes.
No-sharing rules started last year in Peru, Costa Rico and Chile, and most recently in Spain, Canada, New Zealand and Portugal, per NPR.
“With each launch, we learn more about how best to roll out these changes and what matters to members the most — in particular maintaining travel/watching on the go and the ability for people to better control access to their accounts as well as transfer profiles to separate accounts,” Netflix wrote in a shareholder letter, per Forbes.
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Why is Netflix cracking down on password sharing?
The company said that the measures are meant to increase company revenue from the 100 million subscribers they’ve estimated are password-sharing, according to The Washington Post.
Netflix said this loss of potential revenue is “impacting our ability to invest in great new TV and films for our members.”
What are Netflix’s password-sharing rules?
Netflix recently released a statement that sums it up like this, “A Netflix account is for use by one household. Everyone living in that household can use Netflix wherever they are — at home, on the go, on holiday.”
In other words, if you don’t live where the account is billed, there will be a $7.99 charge for that which is only available for the $15.49 monthly “Standard” or $19.99 monthly “Premium” plans, reported The Washington Post. The other two lower plans — $6.99 ad-supported and $9.99 “Basic” plans — will not have the option and will push those subscribers to transfer their account to a new plan that is charged separately.
To avoid getting an extra charge, users will have to check in at least once a month at the location of the account.
When will Netflix stop password sharing in the United States?
Forbes reported that by the end of July this year, U.S. customers can expect to comply with Netflix’s new nonsharing rules.
The first round of emails was sent on Tuesday to anyone that Netflix suspects of password sharing.
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