Netflix has started its plan to make users pay extra for sharing passwords: NPR

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The Netflix logo is seen on the company website on February 2, 2023 in New York. Netflix outlined on Tuesday May 23, 2023 how it plans to crack down on rampant account password sharing in the US, its latest bid to attract more subscribers to its video streaming service amid a slowdown in growth. Richard Drew/AP hides caption

toggle caption Richard Drew/AP

The Netflix logo is seen on the company website on February 2, 2023 in New York. Netflix outlined on Tuesday May 23, 2023 how it plans to crack down on rampant account password sharing in the US, its latest bid to attract more subscribers to its video streaming service amid a slowdown in growth.

Richard Drew/AP

Netflix is ​​launching its crackdown on password sharing, more than a year after the pivot was announced.

The streaming company is limiting password sharing to people who live in the same household. Account holders can add more people outside of the household for an extra $7.99 a month, or they can use the “transfer profile” feature to require extra users to create their own accounts for which they pay, ha said Netflix on Tuesday.

Netflix said out-of-home users should have started receiving emails about the change on Tuesday.

Those living in a household should still be able to access the account when they’re on the go or on the go, Netflix said.

In March of 2022, the company said that while it has encouraged account sharing in the past, with features like profiles and multiple streams, the practices have “impacted our ability to invest in great new TV and movies for our members.” .

Just as then, consumers are not happy with the switch.

“Between Netflix cracking down on password sharing and Max locking you out of your HBO Max account, what an amazing day for the limitless possibilities of streaming!” one user tweeted.

“I’ve been a member of @netflix probably since 2010,” said another person. “I’ve never canceled it, not even with the price hikes. But I think this crackdown on password sharing is the last straw. Not even with your family members? What was the purpose of profiles then?”

“Time to cancel netflix! Nobody pays you more to share a bestie password,” said one user.

According to the company, more than 100 million households participate in password sharing. It had 232.5 million subscribers in April.

Netflix has already tested paid password sharing in international markets such as Chile, Costa and Peru in 2022. Earlier this year, the company expanded paid account sharing to Canada, New Zealand, Portugal, Chile and Spain. The company said it delivered positive results in a letter to shareholders at the end of the first quarter of this year.

“As with Latin America, we see a cancellation reaction in every market when we announce the news, which impacts membership growth in the near term,” he said. But as borrowers start activating their accounts and existing members add “extra member” accounts, we see acquisitions and revenues increase.”

In the first quarter of 2023, Netflix made about $8.2 billion in revenue, up from about $7.9 billion at the end of the first quarter of 2022, according to the letter to shareholders.

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