Netflix has been touting restricting users from widely sharing passwords outside their households and now the popular streaming service has announced that a Netflix account is meant to be used only by “you and the people you live with.” This move aims to curb password-sharing practices that have been prevalent among Netflix users.
Under the new rules, Netflix accounts are now restricted to be used only by the account owner and the people they live with. This means that individuals outside the household will have to either obtain their own Netflix account or have the account owner pay for them to become an “extra member.” Netflix has started notifying U.S. users who engage in password-sharing about this change, emphasizing the need for account usage within the confines of a single household.
To add an extra member, Netflix subscribers with Standard or Premium plans in eligible countries can follow a specific process. The account owner will need to pay for the “extra member slot,” and the intended person with whom they want to share the account will receive an invitation. It’s important to note that the extra member must activate the account in the same country where the account owner created it, as stated by Netflix’s Help Center page.
Netflix has started sending out emails to users who are involved in password sharing, stating that a fee of $7.99 per month will need to be paid
The addition of extra members comes at a cost for Netflix subscribers. In the U.S., adding an extra member to the account incurs an additional charge of $7.99 per month which is about Ksh1,102. This fee applies to both Standard and Premium plans, while the ad-supported plan has a monthly price tag of $6.99. However, it’s worth mentioning that the availability of extra members varies based on the subscription plan.
For Standard plan subscribers, only one extra member can be added. On the other hand, Premium plan subscribers have the option to add two extra members. Unfortunately, it appears that the ability to have extra members is not offered for Netflix’s basic and mobile plans, limiting this feature to higher-tier subscriptions.
Netflix places certain limitations on the usage of extra members. They are only allowed to stream a TV show or movie on one device at a time. Similarly, downloading content is also subject to a similar restriction. These limitations ensure that the account owner retains control over the shared account and prevents excessive simultaneous usage.
Netflix’s efforts to restrict password-sharing are not limited to the United States alone. The company has previously implemented measures to tackle this issue in other countries. Initially, Netflix adopted “different approaches” to address password-sharing in Latin American countries. Subsequently, it introduced paid-sharing in Canada, New Zealand, Portugal, and Spain, among others, as reported by FOX Business.
In April, Netflix announced that the U.S. and other countries would experience the introduction of paid sharing in the second quarter. However, the company had to adjust its launch timeline, pushing it beyond the original first-quarter target. These adjustments were made with the intention of achieving even better results in combating password-sharing practices.
Netflix’s popularity is not confined to the United States alone. The company boasts a massive user base worldwide, with a total of 232.5 million memberships reported as of the first quarter. While this figure represented a slight increase of less than 1% from the previous quarter, it marked a significant 4.9% jump from the first quarter of the previous year. These numbers highlight the widespread reach and influence of Netflix as a global streaming service provider.
Netflix’s recent announcement regarding password-sharing restrictions had an immediate impact on its stock price. As of Tuesday afternoon, the stock experienced a nearly 2% drop, reflecting investor concerns and reactions to the news. The market’s response indicates the perceived significance of this change for Netflix’s future growth and profitability.