Netflix has started to now crack down on sharing passwords in other households from early next year. Netflix ran a trial in South America regarding password sharing and now has decided to roll it out worldwide.
Netflix has estimated that password sharing is in more than 100 million non-paying households worldwide but Netflix do know they wont be able to convert all of that activity into revenue. Netflix launched in November 2022 a cheaper ad-supported plan but that has gotten off to a slow start.
In Chile, Costa Rica and Peru the people that have been caught password sharing have a fee added to their account around 23%-29% of Netflix standard two-stream plan. Netflix based their password sharing on data such as IP addresses, Device ID’s and account activity from devices signed into the Netflix account. Netflix has already started to prompt users to verify their credentials by sending a verification code to the primary account holder.
Netflix has said: “Users that determine to flout the password sharing rules wont face any draconian repercussions for now.” The company will not terminate someone’s account even if they are sharing passwords nor is Netflix likely to impose additional fees’ without the account holders customers consent. This may change in the future.