Netflix password sharing is now BANNED in the US – and it costs $8 more to share credentials

Netflix launches freeloaders from the accounts of its US paying customers.

The streaming giant is officially tackling password sharing by limiting viewership of its platform to users who live in the same household.

Customers who pay for Standard or Premium plans — which cost $15.50 to $20 per month — can share their credentials with someone for an additional $8 per month, a $2 discount off the company’s standard standalone Basic plan.

Without giving details on how it verifies subscriber identities or accounts, Netflix assured anyone living in the same household can still stream TV shows and movies “wherever they are – at home, on the road, on vacation.”

The much-anticipated move has been looming in the US since it was unveiled by Netflix in 2021 to end lost revenue – Citi Bank estimated the company was losing $6 billion annually through password sharing.

While Netflix didn’t share its lost revenue, it revealed in January that that “widespread account sharing” has reached more than 100 million viewers.

Those passwords were funneled through Netflix’s 232.5 million global paying subscribers, which generated the bulk of the company’s $32 billion in revenue last year.

But after a year of moderate subscriber growth, including the biggest customer losses in more than a decade.

Netflix said 2022 was a “difficult year” due to its first subscriber loss in more than a decade – its customer base fell by 200,000 subscribers in the first quarter.

And now the streaming giant is taking a stand.

Those who load paid accounts for free can transfer their Netflix history to their own paid account.

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

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

“Any churn in the US would deepen the erosion in a region where Netflix lost some 920,000 subscribers last year.”

In February, it began blocking free viewers in Canada, New Zealand, Portugal and Spain, following similar moves in Latin America.

The password-sharing ban was initially slated for a global rollout in late March, but Netflix said it expected to complete the transition in the US by the end of June with new features that will prompt users to get their own accounts.

But it seems that the time has come sooner rather than later.

Netflix has been testing different approaches to the password sharing problem internationally.

It is expected to allow subscribers to create sub-accounts for additional users outside of their household for a small additional fee.

Before the crackdown on password sharing began, Netflix started introducing features such as the ability to transfer the profiles set up on subscriber accounts to make it easier for people to keep their viewing history after they no longer watch for free. to watch programmes.

Netflix’s effort to force more viewers to pay to access its programs follows the launch of a $7-per-month subscription that has included commercials on its service for the first time.

Netflix has attracted an additional nine million subscribers worldwide since the ad-supported option debuted, though not everyone signed up for the low-cost plan.

While the new US surcharge for viewers outside subscriber households is lower than Netflix’s base subscription, it comes at a time when Americans have been limiting their discretionary spending due to high inflation.

Shares of Netflix fell 2 percent during Tuesday afternoon trading, but the share price is still up about 20 percent this year.