Big changes coming for Netflix subscribers, with…

Big changes coming for Netflix subscribers, with password-sharing fee on the way

Netflix customers are to be hit with changes in 2023 that will see an increase in price for those who share accounts between households.

The streaming giant has resorted to a crackdown on password-sharing due to the volume of customers using single accounts to access its content.

Changes are due to be made in the first quarter of this year and come after the release of its company earnings report to shareholders last week.

It will become much more difficult to share your account with people outside of the subscriber's household, with an additional fee charged for those using it in multiple locations.

In a report to shareholders, Netflix said: "While our terms of use limit the use of Netflix to a household, we recognise this is a change for members who share their account more broadly.

"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. As is the case today, all members will be able to watch while travelling, whether on a TV or mobile device."

This isn’t the first time customers have been warned of such changes, and the company has been working to test new methods of bringing a stop to the account-sharing habits that are hindering its profit margin.

Back in March of 2022, a Netflix spokesperson said: "We’ve always made it easy for people who live together to share their Netflix account, with features like separate profiles and multiple streams in our Standard and Premium plans.

Subscribers will still be able to use Netflix on the go, on phones, laptops and tablets (Getty Images/iStockphoto)

"While these have been hugely popular, they have also created some confusion about when and how Netflix can be shared. As a result, accounts are being shared between households - impacting our ability to invest in great new TV and films for our members.

"So for the last year we’ve been working on ways to enable members who share outside their household to do so easily and securely, while also paying a bit more."

The company says it expects to lose a lot of customers in the process of making these changes after a trial carried out in selected Central and South American countries last year showed a negative reaction in the short term.

"As we work through this transition – and as some borrowers stop watching either because they don’t convert to extra members or full paying accounts – near-term engagement, as measured by third parties, like Nielsen’s The Gauge, could be negatively impacted," the statement said.

"However, we believe the pattern will be similar to what we’ve seen in Latin America, with engagement growing over time as we continue to deliver a great slate of programming and borrowers sign-up for their own accounts."

Officials at Netflix have not given a specific date for when the clampdown will kick off, but they have said it will be later in Q1 of 2023.

In a Netflix blog post, the streaming giant’s director of product innovation, Chengyi Long, explained how the new system could work.

He said that just one home will be given permission to use a single Netflix account, but it can be used across multiple devices. If families would like to continue utilising the same account from different households, they will likely incur an additional fee.

Anyone who has a profile on the subscriber's account will still be able to use it while travelling, but it will only be accessible by tablet, laptop or mobile.

Subscribers will also be able to have more control over their accounts and will be able to log on to remove unwanted households from their account.

"Today’s widespread account sharing between households undermines our long term ability to invest in and improve our service," Ms. Long said.

"So we’ve been carefully exploring different ways for people who want to share their account to pay a bit more."