Netflix to Begin Cracking Down on Password Sharing in Early 2023

[icanhazmac]

I am a teacher, so yes, our whole community is predicated on the sharing of knowledge and resources for free. For example, if I create teaching resources for my class, I often share them with my other colleagues. The caveat clearly, is that I have zero intention of monetising my teaching material (most wouldn't be fit for print at any rate), and it doesn't cost me anything to do so.

Fair enough, as the "owner" of your creations you are free to do with them as you will.

It's also worth noting that it wasn't so long ago that Netflix was encouraging users to share accounts with one another.

Problematic? I agree. I am sure that the powers that be at Netflix also look back on that time of "if they share a password and watch one thing they will eventually get their own account" and see the error in thinking.

I recognise that Netflix is a private company and free to do whatever it wants, but just because they did an about-turn with their policy doesn't turn people into crooks overnight.

Unfortunately it does. TOS can be changed and by clicking OK and continuing to use the service you agree to the new terms. Simple as that.

 

[SenorWhyMe]

 

[npmacuser5]

Netflix is technologically challenged. Apple has it figured out with family sharing without the location. Sum it up, Netflix needs to get their technology act together. Hey Netflix, today families are on the move, just in case you are too stupid to understand this concept. The idea of a fixed location ended around the end of WWII. Still families, now all over the world map. Netflix really needs a house cleaning on the technology and management side of the business.

 

[usagora]

They're gonna be so surprised how many people only pay for Netflix out of inertia and because their buddy uses it too.

I have no idea what paying for Netflix "out of inertia" means, nor what it would have to do with the topic at hand, which is non-paying "customers".

 

[thomasav]

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 Street Journal. There have been persistent rumors about the end of password sharing, and Netflix has been exploring methods to crack down on it, but the changes are set to officially go into effect next year.

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.

Article Link: Netflix to Begin Cracking Down on Password Sharing in Early 2023

I'll cancel my plan once this happens. I probably only watch an hour or two of Netflix a week, but my family (parents, niece and nephew) rely on my login. That's the only reason I pay $20/month for their service. My family gets it, and are bummed about Netflix's anti-consumer antics.

 

[I7guy]

From Netflix: "Only people who live with you may use your account. Watch on 4 different devices at the same time with Premium, 2 with Standard and 1 with Basic or Basic with ads."

I have the Standard plan and if I'm allowed to share one screen with a different person, what does it matter if that person is living under the same roof or somewhere else?! hmm.

That’s the TOS. Netflix feels there is a difference.

 

[I7guy]

I'll cancel my plan once this happens. I probably only watch an hour or two of Netflix a week, but my family (parents, niece and nephew) rely on my login. That's the only reason I pay $20/month for their service. My family gets it, and are bummed about Netflix's anti-consumer antics.

So now your family won’t watch Netflix?

 

[usagora]

I have the Standard plan and if I'm allowed to share one screen with a different person, what does it matter if that person is living under the same roof or somewhere else?! hmm.

Because the issue is whether they are part of your household or not. If they're not living with you, then obviously they're not part of your household. This is a very common stipulation when it comes to software licensing as well.

 

[kaiguy]

I pay for the Premium tier. I am supposed to be able to watch on 4 different devices at the same time. Netflix does not assume I am personally watching on 4 simultaneous devices. So what's the issue with me sharing it with other members of my family? I'll gladly cancel if my account gets flagged.

 

[Chris298]

I have no idea what paying for Netflix "out of inertia" means, nor what it would have to do with the topic at hand, which is non-paying "customers".

My parents kept paying for Netflix even after I moved out to college I still use it and since they know I use it more than they do they kept paying for it. With the raising costs and fees they aren’t going to want to keep it and I can’t afford the prices they want. That’s a total cancellation in general. I can just subscribe to a cheaper service myself if I wanted to watch things.

 

[nocsi]

You get free netflix with Verizon/T-Mobile, stop being cheap

 

[big kraut]

I’m curious how they’ll implement. My kids live with me most of the time. But they spend time at their mom’s house 4 nights every 2 weeks. So are they going to be blocked from watching while away?
I travel twice a month. Is Netflix going to block me in hotels?
I have Netflix as part of my car’s entertainment system. Will that require a family share plan now?

I assume they will be thoughtful about this, but if any of my potentially edge cases trigger an extra fee, I will cancel.

 

[JapanApple]

it's about time.

 

[Dan From Canada]

Arrrrrrrrrrrrrrr me harties!

Exactly.

 

[Dan From Canada]

They didn’t come to this decision by wet finger in the air. And you don’t know how many subscribers will leave and then come back.

I left a couple of years ago and I will probably never come back to them.

 

[JapanApple]

I don’t understand how people don’t recognize that theft is theft. If I buy a membership at a gym would it be “sharing“ to open a side door and let my non-paying friend in every day? Of course not. It‘s clearly theft of a service which is priced based on paying subscribers.

At my sports club, there was a time when the wives would buy a membership. Then share with others it was no wonder the club was always full. After they noticed the sports clubs took action. stealing is stealing.

 

[1284814]

I never understood why the average joe will jump to the defense of Netflix.
why locking 4k behind 20$
and if I am paying for 4 channels why do they care who is watching it?

 

[Abazigal]

Netflix is technologically challenged. Apple has it figured out with family sharing without the location. Sum it up, Netflix needs to get their technology act together. Hey Netflix, today families are on the move, just in case you are too stupid to understand this concept. The idea of a fixed location ended around the end of WWII. Still families, now all over the world map. Netflix really needs a house cleaning on the technology and management side of the business.

The thing with Apple is that they can afford to be more generous with their services, which exist to help sell more hardware (and keep people in the ecosystem). They are fine with 6 people sharing Apple Music because that usually means 6 iPhone users, for example. You can even share iCloud storage because that means your family members continue to use Apple products. Apple can afford to take the hit to revenue. Netflix has less of a buffer, because subscriptions are their sole source of revenue.

This is the one thing I have always found irritating with software companies. Like with dropbox, it's $100 a year for 1tb of storage, regardless of whether I actually need that much space or not (I don't think I have gone over 30 gb). iCloud lets me pay $1 a month for 50gb, which more than suffices for my photos and device backups, and Apple can do this because using iCloud means I have already purchased an expensive iPhone. I recognise that it wouldn't be economically feasible for Dropbox to offer more pricing tiers because it would mean less revenue overall, but as a (once) paying consumer, I sure wish they did.

Same with OneDrive (which I have switched over from Dropbox, because I was already paying for Office anyways).

I get why companies are doing stuff like this, and it doesn't make it suck any less.

 

[1284814]

Granted going a year strong without Netflix, and I never regretted removing this garbage off my budget.
2 years of paying 20$ a month is at least 400$- I could buy a nice refurbished pc for this, I could buy a nice art pad, or an extra monitor, and then go to iTunes and buy cheap 4.99$ movies to built my home theatre.

 

[Kierkegaarden]

If Netflix hadn’t refused to pay Apple a commission on their platform, and the subscription was tied to an Apple ID, they wouldn’t have gotten into this predicament in the first place.

 

[1284814]

Plus one thing to consider is if you use a vpn they will never know for sure. or if you create a new account every 3 months . And just keep sharing it.

 

[1284814]

The whole analogy, or whatever comparing sharing Netflix account is thieft do it realize that Netflix purposefully make you pay for extra channels if you need a good video quality. i always have 3 channel or users that wasn’t being used back then. And honestly imagined if your gym did the same thing?

 

[Keysersozeh]

I will probably cancel once this change happens when my parents get their first notice related to this change IF there is still only one tier with 4K. Don't box me in with only one option for 4K which also happened to be the highest $$ when there is only one screen using the service at a time. We only watch TV in the living room.

We occasionally watch content on Netflix and the same with my parents. It's a nice to have.

From what I took away from the article was that $3 was outside the US for the additional access. However the $6-7 was mentioned potentially for the US. That's a nonstarter.

 

[usagora]

My parents kept paying for Netflix even after I moved out to college I still use it and since they know I use it more than they do they kept paying for it. With the raising costs and fees they aren’t going to want to keep it and I can’t afford the prices they want. That’s a total cancellation in general. I can just subscribe to a cheaper service myself if I wanted to watch things.

Ok, but that's simply one anecdote out of hundreds of thousands (millions?). I'm sure by far there are more people sharing passwords "illegally" that would not cancel their service if the people outside their household using their logins were no longer able to, and many of those other people would then purchase their own subscription. Obviously many would not as well, but I'm fairly certain the end result will be increased profits for Netflix. Otherwise they wouldn't be bothering to focus on this.

 

[citysnaps]

I highly doubt netflix crackdown would achieve the desired effect, given they just don’t understand the reason why people share their account. Instead of improving services, they chase after people “pirating their content”.

Netflix days are numbered.

I suspect Netflix understands that people (without morals) like free stuff, provided they can get away with it.