Netflix is cracking down on password sharing in March

There might be just 10 weeks left for the valid sharing of Netflix logins. The streaming giant plans to restrain US subscribers from sharing passwords by the end of March. 

In July, Netflix hinted at a possible password-sharing crackdown following its subscriber loss after over a decade. The company lost 200,000 of its subscribers in July. Add to this the recent layoffs the streaming giant implemented due to weakening stock prices.

Netflix is planning to ban all password sharing by March 2023. The company expects to make around $720 Million from the change 🎬💰 pic.twitter.com/JRA8MPWByK

— Daily Loud (@DailyLoud) January 25, 2023

On Thursday, the streaming giant mentioned in a letter to its shareholders that it plans to “roll out paid sharing more broadly” later in the first quarter. It’s possible that watching series from a Netflix login sharing won’t be working by the end of March.

Netflix said that account sharing covers up to 100 million households. It said this “undermines our long-term ability to invest in and improve Netflix.” It also recognizes that “this is a change for members who share their account more broadly.”

Moreover. the shareholder letter also cited, “As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with.” With this, subscribers can now transfer a profile to a new account.

Netflix will begin charging for password sharing by the end of March. 🔒 pic.twitter.com/ffNmkBYHyV

— Complex Pop Culture (@ComplexPop) January 25, 2023

According to an Insider report, paid Netflix login sharing rolled out in Chile, Peru, and Costa Rica. It costs $2-$3 more to add an extra account of someone outside a household. Peruvian subscribers told the publication Rest of World that the new policy is confusing and “a mess.”

The report also said that Netflix launched this update inconsistently. Many users have safely avoided the extra charges while others incurred the extra charges leading to the cancellation of accounts.

Major effects on subscribers

In addition, Netflix already anticipated the same response in its US market. “From our experience in Latin America, we expect some cancel reaction in each market when we roll out paid sharing.” The company told investors that this new policy could affect its viewership in just a short period.

The streaming giant said it understands that this new Netflix login policy is a major blow to customers. Thus, it has sought ways to soften the effect through additional features. With the new policy, subscribers can now see all the devices using the account. The new dashboard will now let users log out of accounts from individual devices.

How will Netflix login sharing be detected?

Trials in other countries proved that the process of detecting password sharing would be mild at its first rollout. It depends on a combination of user conscientiousness and technology to prompt oversharers into paying what is due for the additional privilege.

In this case, Netflix might use a subscriber’s location that the IP address of the internet-connected device will provide. Then it can identify which subscribers count as “household” members who live together. This is according to Insider reporter Sarah Saril.

Saril added, “If you’re watching on a TV, it’ll provide exactly where you are. They only want people in your household, at your address, watching.” Netflix’s website stated that it uses  “IP addresses, device IDs, and account activity from devices signed into the Netflix account.” 

Furthermore, the wider rollout of Netflix login restrictions followed after the ad-supported subscriptions. This subscription includes five advertisements per hour. While this “Basic with Ads” plan costs $7 monthly, it is relatively $3 cheaper than the ad-free plan.