Netflix to Implement Its New Password-Sharing Policy Soon in USA

Netflix is about to launch its measures to stop password-sharing among its US customers. The popular streaming platform announced in late 2022 that it would change its policies and limit the number of households that can access one account with a paid subscription.

Many users criticized Netflix’s new password-sharing rules when they first heard about them and expressed their dissatisfaction with the sudden change.

According to Variety, Netflix will start limiting password-sharing for its US customers in the second quarter of the year. The streaming platform hopes that by preventing multiple households from using one account with a paid subscription, more people will buy their own memberships.

Netflix’s new rules will require existing users to pay an extra fee for adding members outside their main households. Those who are not in the same home network will not be able to sign in. The streaming service had already tested the new approach in Latin America and then expanded it to other international markets, such as Canada, New Zealand, Spain, and Portugal.

Netflix’s plans faced a lot of criticism and mockery, and some wonder if the changes could hurt the service’s image.

However, Netflix recently saw a rise in subscribers in the first quarter of 2023 even though it no longer cares about subscriber growth as a long-term aim, which means that the service may be happy enough with their outcomes in other markets to continue elsewhere.

With Netflix offering a cheap, ad-supported subscription while trying to increase its income, the service may think users will be more willing to pay for their own membership.

Netflix is sure about its choice to limit password-sharing, but the policy change could still be risky for the service. Some users may be ready to stop sharing passwords and buy their own membership, but others may compare what the service offers with other competitors, such as Disney+, Prime Video, and the newly renamed Warner Bros. Discovery-owned Max and choose to switch to other services.

While Netflix has seen a growth in subscribers from early 2022 numbers, changing their rules while audiences are becoming pickier with their subscriptions could easily hurt them.

While previous reports faced criticism from users, it is obvious that Netflix’s password-sharing rules will be enforced in the future. With Netflix offering new ad-supported plans to customers at a lower price or letting existing accounts add new users for a fee, the service has tried to provide options in order to keep their current audience numbers.

In the end, Netflix’s next quarterly results will show whether their plan was a hit or miss.