Get ready to pay up, because Netflix is introducing new policies to limit password-sharing.
Starting in 2023, Netflix is rolling out new plans to catch users in their tracks when they’re using another household’s account. So, for us college students, this probably means saying goodbye to our parents’ beloved Netflix accounts (or friends’, or exes’ — hey, I’m not here to judge you).
So, if you’re currently sharing your account, or confused about what even qualifies as password-sharing, look no further. Here’s everything you should know about this frustrating — yet admittedly understandable — new policy.
Is Netflix canceling password-sharing?
Yes, you heard right: Netflix is attempting to remove all instances of password-sharing across the world — or, better yet, charge you more for it.
This is the case for multiple reasons, all stemming from the fact that Netflix has lost revenue recently. Since the streaming service increased their prices this past January, Netflix admitted to have lost over 600,000 American and Canadian subscribers, partially due to password-sharing. So, these new policies will ensure that each account is only held by one household.
As a result, Netflix is introducing new ways for people to accommodate to this change — at an extra cost, of course. If you’re currently sharing an account and want to create your own, you’ll be able to move your profile to a new account. Alternatively, if you’d rather continue sharing one account, you’ll be able to add an extra profile for an increased monthly charge (which was around $3 to $4 per additional household in a test Netflix did in Latin America).
Finally, because of their decreasing revenue, Netflix is also adding a new advertisements tier, for those who’d rather pay less money for the streaming service in exchange for some ads.
How does Netflix know if you’re sharing passwords?
The company has tested out many strategies, but Netflix will allegedly base the definition of “password-sharing” on where you live.
For this particular rule, it’s all about your household, which is specified based on the “primary residence” under your account. So, if Netflix catches you using the same account for more than two weeks outside this residence, you’ll be instructed to add more profiles or make your own account.
Either this, or they’re mind-readers — either way, they’re buckling down to catch every last account-sharer. (Good luck to my fellow study abroad students!)
Is password-sharing illegal?
While you won’t get arrested for sharing your Netflix password, it’s against the Netflix Terms of Use, which you agree to when you sign up for an account. This means that if you continue sharing your account with someone who lives in a different household, Netflix can remove your account.
But remember: After these new policies drop, it’s likely Netflix will instead just tell you to add another household to your account, or make a new one entirely.
When does this change go live?
They haven’t announced a specific date yet, but Netflix has said that all of these changes plan to go into effect in early 2023.
So, I guess all of this means we’re gonna have to make a tough decision: Is Season 4 of You worth spending more money on? Either way, it’s up to you! Good luck with all your Netflix needs, besties!