The Netflix Password Sharing Crackdown: Everything You Need to Know

Times have certainly changed. In 2017, Netflix tweeted that love was sharing a password. In 2023, the streaming service provider is cracking down on password sharing with sweeping changes to how subscribers can access content on the platform. While changes have already gone live in Canada and several other countries, Netflix has yet to enforce new rules in the United States. Policy changes are coming, though. So, what can United States subscribers expect? 

Netflix clamps down on password-sharing, makes subscribers pay up 

Netflix has spent years allowing subscribers across the globe to share their passwords with friends, family, and, in some cases, perfect strangers. They basically encouraged it. Now, things have changed. In several countries, Netflix has laid down new terms that require subscribers to regularly check in to their account, declare a home base, and pay for additional users. 

Last year, the streaming service provider began testing the waters, and now sweeping changes are going into effect. Most recently, Netflix has asked subscribers in Canada, Portugal, New Zealand, and Spain to “check-in” at their home addresses. The check-in ensures the subscriber uses the service at home, although they can travel with their account when needed. How exactly that works remains unclear. 

Subscribers can add additional “homes” to their accounts, but it will cost them. In Canada, each different user will cost subscribers $7.99 per month, and the number of users added to the account is capped at two. The same rules are expected to affect American subscribers soon. 

When will free password-sharing end in the United States? 

Subscribers in Canada, New Zealand, Portugal, and Spain are experiencing changes to Netflix’s password-sharing policy, but users in the United States are not. Well, at least not yet. According to CNBC, the streaming giant has opted to try out their new verification rules and payment model in other countries before launching it stateside. 

According to the publication, changes are coming to the United States sooner rather than later. The streaming service provider has earmarked March as the month it will enforce its new rules in the country where the company was founded. A change in the rules in the United States is expected to affect more than 70 million subscribers. 

Why is Netflix restricting password sharing now? 

The streaming service provider was once totally onboard with password sharing. Now, they’ve changed their tune, and subscribers are scrambling to figure out why. Netflix has released statements explaining its thought process. 

According to the provider, password sharing has become costly for Netflix and has led to revenue issues in recent years. Netflix reported its first loss of subscribers in a decade in 2022. The revenue loss has forced the streaming service provider to cut back on some original content. 

Just how costly is it? According to the Los Angeles Times, password sharing and illegal downloads cost streaming service providers, including Netflix, billions each year. To date, competitors like Hulu, HBO Max, and other streaming platforms have yet to crack down on password sharing. It feels like an inevitability, though.