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[Draugoth]

Netflix to Begin Cracking Down on Password Sharing in Early 2023

Popular streaming service Netflix is planning to put an end to password sharing starting in early 2023, according to a new report from The Wall...

www.macrumors.com

Netflix has long known that password sharing is a problem affecting its profits, but the uptick in subscriptions in 2020 allowed the company to avoid addressing it. With revenue falling this year and Netflix's first subscriber loss in 10 years, Netflix CEO Reed Hastings decided it was time to act on the issue, which had been put off for too long.

Starting in 2023, Netflix plans to ask people who share accounts with others outside of their household to pay to do so. Netflix has been testing add-on payments for password sharing in some Latin American countries, charging around $3 extra. In these countries, the primary account owner must provide a verification code to anyone outside the household who wants to access the account, with Netflix repeatedly asking for the code until a monthly fee is paid to add non-household subscribers.

A similar tactic could be used in the United States, with Netflix possibly charging just below the cost of its $6.99 ad-supported plan for non-household subscribers who share someone's plan. Netflix wants those who have a shared password to sign up for their own subscription.

Netflix will enforce password sharing rules through IP addresses, device IDs, and account activity. To keep from alienating customers, Netflix may slowly phase out password sharing rather than putting a stop to it all at once. One method Netflix reportedly considered was adding pay-per-view content that could make users not want to share their passwords with people who might rent content, but Netflix ultimately decided against it.

The Netflix terms of service have never allowed for multi-household sharing, but Netflix has looked the other way for so long that implementing fees for offering account access to friends and family could upset some of its subscribers. An estimated 222 million paying households share passwords with an additional 100 million households that Netflix wants to monetize.

Pricing on Netflix plans includes watching on multiple supported devices in addition to affecting streaming quality, but Netflix does not want multiple viewers watching outside of the same household. Netflix's premium plan, for example, allows for Ultra HD 4K streaming and support for watching on four supported devices like iPhones, iPads, and Macs at one time, as long as those devices are owned by people in the same household.

In addition to boosting revenue by eliminating password sharing, Netflix has also introduced a more affordable ad-supported tier that is priced at $6.99 per month in the United States.

 

[Kenpachii]

How to kill your business.

Piss of consumers.

 

[Trunx81]

Well bye then.

 

[chromhound]

 

[Haint]

Well bye then.

How to kill your business.

Piss of consumers.

Not really, their operation costs will plummet and long term they'll pick up FAR more people who will begrudgingly choose to pay for their own subs than they will lose to hate cancelers. The number of people who "legitimately share" by splitting the payment is infinitesimal, they'll convert 10x more freeloaders to paying customers. They also won't have to waste money streaming 4K HDR to freeloaders.

 

[JayK47]

Password sharing. Who even does this? Who thinks it is ok to do it? Crooks, that is who. This is the only thing Netflix is doing that I am ok with.

 

[Kenpachii]

Not really, their operation costs will plummet and long term they'll pick up FAR more people who will begrudgingly choose to pay for their own subs than they will lose to hate cancelers. The number of people who "legitimately share" by splitting the payment is infinitesimal, they'll convert 10x more freeloaders to paying customers. They also won't have to waste money streaming 4K HDR to freeloaders.

Nvm though it where multiple accounts or something.

 

[nocsi]

Netflix is included in T-Mobile, and as of earlier last week, Verizon as well

 

[nush]

Can they not fix it so that only one account is logged in at a time? That's how it works on console game accounts.

It's a risky move, forcing people to pay for Netflix that were not paying before. Those people could well decide to pay for another streaming service instead if it's more attractive to them.

 

[Nobody_Important]

Fuck that lol

So glad I cancelled my sub awhile ago when they were busy cancelling all their best stuff.

 

[Haemi]

Time to sell my house and move back to my parents

 

[Cyberpunkd]

How to kill your business.

Piss of consumers.

They are not consumers if they are leeching content from their friends. Why should Netflix cater to people that give them no money? What is this, some sort of ‘work for exposure’ spin?

 

[Tieno]

Denying people service who don't give you money for said service and having an alternative...that sounds reasonable?

 

[Nobody_Important]

Denying people service who don't give you money for said service...that sounds reasonable?

It does until you realize it will tank your entire company and destroy any good will left with your consumers.

 

[Tieno]

It does until you realize it will tank your entire company and destroy any good will left with your consumers.

How are they consumers?

 

[Nobody_Important]

How are they consumers?

The people who share their accounts or split the subscription with others are also consumers. Netflix trying to suddenly charge them for something they have been doing for ages FOR FREE while also dealing with the blowback from people they were sharing with? Combine that with the repeated cancellations, the lack of quality content, and the rise of other services?


This is the first step towards the edge for them and I honestly can't believe they are dumb enough to make it. Netflix is fucked.

 

[Doczu]

Oh well, not gonna pay anymore for Netflix. Not enough content for me to either pay up or get my own plan.

 

[nush]

Fuck that lol

So glad I cancelled my sub awhile ago when they were busy cancelling all their best stuff.

The people who share their accounts or split the subscription with others are also consumers. Netflix trying to suddenly charge them for something they have been doing for ages FOR FREE while also dealing with the blowback from people they were sharing with? Combine that with the repeated cancellations, the lack of quality content, and the rise of other services?


This is the first step towards the edge for them and I honestly can't believe they are dumb enough to make it. Netflix is fucked.

Tell me you benefit from password sharing, without telling me you benefit from password sharing.

We all know you cancelled because they raised the cost of a sub for less than the price of a cup of coffee at Starbucks.

 

[Tieno]

The people who share their accounts or split the subscription with others are are consumers. Netflix trying to suddenly charge them for something they have been doing for ages FOR FREE while also dealing with the blowback from people they were sharing with? Combine that with the repeated cancellations, the lack of quality content, and the rise of other services?


This is the first step towards the edge for them and I honestly can't believe they are dumb enough to make it. Netflix is fucked.

I see your point, that people can be 'angry' about something free being taken away...but I don't find it unreasonable to not pay that much attention to the 'good will' (whatever that's worth from free loaders) and those concerns.

 

[newtypepilot]

 

[Goalus]

How are they consumers?

They consume.
(without paying)

 

[xrnzaaas]

So let me get this straight - it's not only a war against those who share accounts (that still would've been a lost cause), but also making it more difficult for people who stream outside of their household (like when they're travelling)? This is gonna be a nice trainwreck.

 

[6502]

There is not much quality on Netflix anymore, tbh if it wasn't for sharing and having family devices using it while travelling I would cancel it.

Make that a problem where people are ringing me for codes, then it will be bye bye Netflix.

But I am sure it will work out. Just as DRM on Xbox one helped them dominate ps4.

 

[sinnergy]

Fuck the freeloaders

 

[Kar]

What about families? Will we be able to share 1 account if we live under the same roof?

 

[SJRB]

Also netflix when viewership numbers plummet:

 

[jason10mm]

Not really, their operation costs will plummet and long term they'll pick up FAR more people who will begrudgingly choose to pay for their own subs than they will lose to hate cancelers. The number of people who "legitimately share" by splitting the payment is infinitesimal, they'll convert 10x more freeloaders to paying customers. They also won't have to waste money streaming 4K HDR to freeloaders.

I don't think that will happen as much as they hope. Once you turn off one of these streaming services for like a week it's pretty easy to just ignore it forever. There are very few "OMG must watch!" things on these services and netflix in particular is pretty "sub and binge"able IMHO. I think trying to cut off 1/3rd of the folks watching (most likely younger folks sponging off their parents, would be my guess) will just drive 'buzz' for any netflix show even lower.

 

[Trunx81]

Password sharing. Who even does this? Who thinks it is ok to do it? Crooks, that is who. This is the only thing Netflix is doing that I am ok with.

Not really. Got the highest Netflix fare, that allows up to 4 people (rules say ‘in a household’, yes, but Netflix even supported sharing back in the days) and we share the costs equally. Saves everyone just a few bucks, but we have a society!

 

[AJUMP23]

I share with my dad and my in-laws. I wonder how that will look soon.

 

[YCoCg]

Will Netflix step into the year 2023 by offering 4k HDR as standard? Or are they going to restrict their lowest tier to 480p DVD quality when everything else offers 1080p at minimum.

 

[Jaybe]

I’m still looking for Netflix to provide a ‘4K 1 screen’ option. They justify the high price of their premium level with 4 screens and then are shocked when people want to share the excess they were made to purchase with others.

 

[Panajev2001a]

I’m still looking for Netflix to provide a ‘4K 1 screen’ option. They justify the high price of their premium level with 4 screens and then are shocked when people want to share the excess they were made to purchase with others.

Netflix is starting to follow the old cable provider playbook… keep adding theoretical value beyond people’s ability to extract it to justify increasing prices.

 

[Tams]

 

[AJUMP23]

Will Netflix step into the year 2023 by offering 4k HDR as standard? Or are they going to restrict their lowest tier to 480p DVD quality when everything else offers 1080p at minimum.

Just make 4k password share tier.

 

[Lasha]

I think charging for sharing is a smart way to drive up revenue. The person paying the bill every month is Netflix's customer. Subscribers already think Netflix is worth the price. Most people leeching off an account are not compensating the subscriber. It's friends sharing. Accounts from severed relationships. People like me who have been on their parents Netflix since the service went live. All Netflix has to do is find a way to monetize some fraction of leechers without disrupting the experience of its existing customers.

 

[The Pleasure]

Also netflix when viewership numbers plummet:

Pokeman Violet?

 

[LordCBH]

This won’t be the W Netflix thinks it will. Netflix 6 months from now: “why have half our subscribers canceled?” while they release yet another live action adaptation that bombs spectacularly.

 

[Deleted member 1159]

Netflix is included in T-Mobile, and as of earlier last week, Verizon as well

Wait what? Hadn’t heard that, that would be nice.

My family and friends all share passwords. Calling my mom to get an HBO or Xfinity 2FA code, or my dad doing the same to me so he can watch Willow on our Disney+ account is like a new Christmas tradition.

 

[dr_octagon]

 

[sono]

Can they not fix it so that only one account is logged in at a time? That's how it works on console game accounts.

This is the answer folks..

 

[YCoCg]

This is the answer folks..

But they sell multiple accounts, up to 4 streamers at one time per paid account.

 

[DanteFox]

Also netflix when viewership numbers plummet:

But they will be making more money from those that remain. So it could very well be worth it to them to lose out on the freeloader-with-principles audience.

 

[Fbh]

I'm in one of the countries where they beta tested this.
They were supposed to begin cracking down on it in like April but it wasn't until like 3 weeks ago that we got the notice.
We paid, it's still cheaper for my sister to get an extra account and us to split the cost than each of us to get a completely separate account

 

[Akuza89]

Genius move....if you want your viewership to drop!

I can see why they're doing this, along with offering a less costly/free tier (eventually), they want to increase revenue... just not this way?

Maybe look at making better content, wednesday was the last good thing i've turned netflix on for.. (granted alice in borderland seasons 2 just dropped..)

 

[Cyberpunkd]

This is the first step towards the edge for them and I honestly can't believe they are dumb enough to make it. Netflix is fucked.

I cannot believe people are honestly advocating companies to give their products for free.

 

[Cyberpunkd]

Maybe look at making better content, wednesday was the last good thing i've turned netflix on for.. (granted alice in borderland seasons 2 just dropped..)

But what’s the point if people will just continue to password share to watch the new content?

 

[squeakywheel]

I don't think this will be the massive drain on the subscriber base that the leechers here think it will impact. The nag screen will be annoying but adding additional users will still be cheaper. I've downgraded my 4k family plan to a single 1080p screen since I usually watch on mobile and my family will need to be added as extra users later.

 

[poppabk]

I can see why they want to do this, but it is their own fault for structuring their tiers like they have. Seperate out number of screens and resolution and this problem practically solves itself. Not sure how they will pull this off without pissing off people like me who travel.

 

[Nobody_Important]

I cannot believe people are honestly advocating companies to give their products for free.

I'm not saying give it away for free. I'm saying that cracking down on password sharing is dumb and it will backfire on them.

 

[BennyBlanco]

ok netflix, you win. i'm not subbing tho.