What does Netflix’s password sharing crackdown mean for YOU? Everything you need to know

Netflix’s crackdown on password sharing finally arrived in Britain yesterday, amid efforts to put an end to freeloaders.

Millions of people are now banned from lending streaming accounts to anyone outside their household as the TV giant has tightened its rules in more than 100 countries.

While it’s currently unclear how identities will be verified, many will have to pay additional fees for each account they hand out for free.

The California-based company said, “A Netflix account is for use by one household. Anyone living in that household can use Netflix anywhere – at home, on the road, on vacation – and take advantage of new features like Transfer Profile and Manage Access and Devices.”

But what does this mean for you? MailOnline explains everything you need to know about Netflix’s big changes.

What are the rules and do I have to pay?

Netflix is ​​committed to sharing passwords between people who do not live in the same household.

Whether you’ve given out account details to a friend down the road or a distant relative in Spain, this rule will affect you.

While password sharing was not allowed prior to yesterday’s announcement, stricter measures are being put in place to ensure people are following the rules.

Account holders can still watch Netflix while on the road or abroad, but the extra prizes could add up when someone else jumps on board.

This can be done in two different ways, with the freeloader first being offered to ‘transfer a profile’ to a brand new membership for which they pay.

Otherwise, the original account holder can pay £4.99 per month for each additional member they allow to use Netflix.

Are additional member accounts different?

Netflix account owners can purchase additional member slots for friends and family members who do not live with them.

But the TV giant warns that anyone living in another country or using a VPN, proxy or ‘unblocker’ service may not be able to add an extra slot.

Potential members receive an email or SMS invitation to set up the lock which has its own profile, account and password.

These users will continue to have access to all movies and shows through any internet-connected device that offers the app.

Videos also have the same quality as the account holder paying for the additional member slot.

But the service warns that there are some key differences between additional member accounts and an average Netflix account.

Added members can only view or download content on one device at a time with a single profile.

These accounts must also be activated in the same country as the account owner.

How will the rules be enforced?

Netflix has not yet officially confirmed how the rules will be enforced.

But one cybersecurity expert believes that data such as IP addresses – unique codes for each device – can be used to detect unauthorized users.

Global Security Advisor at ESET, Jake Moore, told MailOnline: “Without knowing how Netflix will enforce this new measure, it will be hard to know how bulletproof it will be.

However, it’s probably based on unique device identifiers (so Netflix knows if it’s a TV or what mobile device to play it on) and IP addresses.

‘IP addresses are easy to change with a VPN and that can be a thorn in the side of Netflix.

Netflix may assign a certain number of devices to a home IP address and then a small number of roaming IP addresses to use mobile data, such as on a train.

“This IP address will always change, so it will possibly look into removing secondary static IP addresses.

“The reason it has taken so long for this new measure to be released is that it would be extremely difficult to make this process watertight.”

The company has also previously suggested that accounts must be linked to home Wi-Fi at least once a month to be considered a “trusted device.”

This would present some complications if users plan to travel or relocate for longer than 31 days.

When asked, Netflix told MailOnline that it is not disclosing details about its enforcement.

Why is Netflix doing this?

Last year, Netflix announced it would restrict account sharing, with testing underway in some markets.

It’s a drastic turnaround for the company, which just six years ago tweeted that “love is sharing a password.”

But insiders claim the plans have finally kicked off as Netflix struggles with disappointing subscriber numbers in the wake of the pandemic.

The program has already been rolled out in Latin America, Canada, New Zealand, Portugal and Spain.

The US and UK are among more than 100 countries now also on the list following the announcement of the plans yesterday.

But the plan has not met with overwhelming success as Netflix has lost more than a million Hispanic subscribers in the first three months of 2023, according to Kantar.

In January, Netflix co-CEO Greg Peters also acknowledged that the crackdown could see more subscriber cancellations.

“It’s worth noting that this won’t be a widely popular move,” Peters advised investors.

The company estimated that more than 100 million households had provided their credentials to friends and family away from home.

At the end of March, Netflix had 232.5 million paying customers worldwide.