Netflix’s long-awaited crackdown on password sharing is finally coming to the U.S., the streamer said on Tuesday.
Netflix originally planned to roll out “paid sharing” — an update designed to covert account-sharers into paying users — in the first quarter of this year. Instead, the company now says it’ll introduce that change a little later, sometime before June 30, 2023.
Netflix’s quest to boost revenues by curbing password sharing kicked off earlier this year in Canada, New Zealand, Portugal and Spain. In these countries, Netflix requires paying users to set a “primary location” for their account. When someone they don’t live with uses their account, Netflix said it will prompt you to “buy an extra member” — up to two. The extra member fee varies by country; for example, it’s CAD $7.99 in Canada and €3.99 in Portugal.
Netflix told investors that it thinks “this will result in a better outcome for both our members and our business.” The company has chalked the change up as an opportunity to clarify “confusion about when and how you can share Netflix,” but make no mistake, this is a crackdown. Netflix has floated this plan for years.