Netflix to Crack Down on Password Sharing in the US Starting Q2 2023

Netflix’s plan to tackle password sharing among subscribers is finally coming to the U.S. later this year, the company announced on Tuesday.

In its first-quarter 2023 earnings report, Netflix confirmed that it will start rolling out the “paid sharing” program in the U.S. on or before June 30. This initiative, which the company began testing in countries like Canada, Spain, New Zealand, and Portugal, is designed to encourage account sharers to pay for their own accounts.

According to the new policy, paying Netflix subscribers must set a “primary location” for their accounts, and they can add up to two extra members per account for a varying fee, depending on the country. Netflix warns subscribers that if they share their passwords with people outside their households, they must “buy an extra member.”

Although Netflix initially planned to launch the program in the U.S. during the first quarter of 2023, the company delayed the rollout until later this year. The company did not give any specific details about how much it would charge for each additional member in the U.S.

In Canada, the company charges CAD $7.99 per extra member per month, while in Portugal, the fee is €3.99. Netflix expects the initiative to generate more revenue as account sharers start activating their own accounts, and existing members add “extra member” accounts.

The streaming giant’s decision to enforce paid sharing has been met with mixed reactions from members. Netflix acknowledges that it could experience a short-term member growth impact in each market as the new policy takes effect.

However, it believes that “as borrowers start to activate their own accounts and existing members add ‘extra member’ accounts, we see increased acquisition and revenue.”

Despite the changes, the company remains optimistic, citing increased earnings in Q1 2023, surpassing analysts’ expectations.

As of Tuesday, Netflix’s stock price closed at $333.70 per share, and it is expected to continue growing.