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With the news that Netflix is cracking down on password sharing and requiring customers to add paid “extra member” subscriptions for people outside of the same household, subscribers are not just annoyed, but confused, by the new rules.
In an effort to simplify the new Netflix pricing plans and the Netflix password sharing controversy, here’s everything you need to know.
What is the Netflix password sharing crackdown?
Up until now, Netflix subscribers have been able to share their account with friends or family who live outside the same household, which made for a nice little money-saving hack for many users. But Netflix has long been aware of the way this affects their own bottom line, and recently started to roll out what they call a “paid sharing” plan in other parts of the globe, including the U.K., Ireland and Scandinavia, where existing subscribers could add extra members to their account for an additional fee. This week, Netflix announced that it will roll out paid sharing in the U.S., too, where subscribers can add up to two users who live outside their home for $7.99 per person.
How does Netflix know you’re sharing?
If you look at Netflix’s Help site, it states, “A Netflix account is meant to be shared by people living together in one household.” A “Household” — which is occasionally capitalized on their site to make it seem like an official designation — is defined by Netflix as ” a collection of the devices connected to the internet at the main place you watch Netflix. A Netflix Household can be set using a TV device. All other devices that use your Netflix account on the same internet connection as this TV will automatically be part of your Netflix Household.”
So how can Netflix tell if someone accessing a Netflix account is outside of your Household? The Help site explains, “We use information such as IP addresses, device IDs, and account activity to determine whether a device signed into your account is part of your Netflix Household. We do not collect GPS data to try to determine the precise physical location of your devices.”
How can you get around Netflix’s password-sharing crackdown?
The reality is that Netflix has never encouraged or allowed password-sharing, but for a while, we lived in a golden age where they turned a blind eye to it. As of May 23, that they have created paid sharing, it seems like they’ll be enforcing the crackdown much more seriously, and the only workaround will be to actually buy an extra membership for those outside your household. On the plus side, an extra membership that’s added on to an existing subscription costs $7.99 per month, as opposed the Basic plan membership of $9.99 per month. On the down side, an extra membership costs $7.99 per month as opposed to free with password sharing.
Will Netflix block you if they discover you’re password sharing?
No more Waffles + Mochi for you! Just kidding. Maybe? While Netflix has stated that it will use a combination of IP address and Wi-Fi tracking to ensure that the new rules for account sharing are being followed, there is no official information on the Netflix site regarding what will happen if you do continue to password share. Variety reported that a Netflix representative they spoke with said “the company will begin to block devices that it detects are being used by someone outside the account-holder’s primary residence after a certain number of days; the spokesperson didn’t say how many days that would be. Those who to use a shared password in violation of Netflix’s terms of service will be notified that they need to sign up for their own account or be added as a sub-account by the primary account holder.”
Why is Netflix cracking down on password sharing?
Money! Netflix has previously shared in a 2022 earnings report that over 100 million households share an account, which they noted “undermines our long term ability to invest in and improve Netflix, as well as build our business.”
While Netflix acknowledged that there would likely be a backlash and cancellations in response to to this news, many users have been quick to point out the irony of a tweet sent by the platform five years ago encouraging sharing.
Anyway. Sorry your Grandma can’t watch FUBAR this weekend at her nursing home.
