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Netflix has officially begun its plan to make users pay extra for password sharing

The Netflix logo is displayed on the company's website on Feb. 2, 2023, in New York. Netflix on Tuesday, May 23, 2023, outlined how it intends to crack down on the rampant sharing of account passwords in the U.S., its latest bid to reel in more subscribers to its video streaming service amid a slowdown in growth.
Richard Drew
/
AP
The Netflix logo is displayed on the company's website on Feb. 2, 2023, in New York. Netflix on Tuesday, May 23, 2023, outlined how it intends to crack down on the rampant sharing of account passwords in the U.S., its latest bid to reel in more subscribers to its video streaming service amid a slowdown in growth.

Netflix is rolling out its crackdown on password sharing, more than a year after the pivot was first announced.

The streaming company is limiting password sharing to people living in the same household. Account holders can add more people outside of the household for an extra $7.99 a month, or they can use the "transfer profile" feature to prompt extra users to make their own accounts that they pay for, Netflix said Tuesday.

Netflix said out-of-household users should have begun receiving emails about the change Tuesday.

Those living in one household should still be able to access the account when traveling or on the go, Netflix said.

In March of 2022, the company said that while it had encouraged account sharing in the past, with features such as profiles and multiple streams, the practices have been "impacting our ability to invest in great new TV and films for our members."

Much like back then, consumers are not happy about the switch.

"Between Netflix cracking down on password sharing and Max locking you out of your HBO Max account, what an incredible day for the limitless possibilities of streaming!" one user tweeted.

"​​I've been a @netflix member since probably 2010," another person said. "I never cancelled it, even with the price hikes. But I think this password sharing crackdown plan is the last straw. Not even with your family members? What was the point of profiles then?"

"Time to cancel netflix! nobody is paying you more to share a password bestie," a user said.

According to the company, more than 100 million households participate in password sharing. It had 232.5 million subscribers as of April.

Netflix previously tested out paid password sharing in international markets such as Chile, Costa Rica and Peru in 2022. Earlier this year, the company expanded its paid account sharing into Canada, New Zealand, Portugal, Chile and Spain. The company said it had positive results in a letter to shareholders at the end of the first quarter of this year.

"As with Latin America, we see a cancel reaction in each market when we announce the news, which impacts near term member growth," it said. But as borrowers start to activate their own accounts and existing members add 'extra member' accounts, we see increased acquisition and revenue."

In the first quarter of 2023, Netflix brought in about $8.2 billion in revenue, compared to about $7.9 billion at the end of the first quarter of 2022, according to the letter to shareholders.

Copyright 2023 NPR. To see more, visit https://www.npr.org.

Ayana Archie
[Copyright 2024 NPR]

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SOMOS CONNECTICUT es una iniciativa de Connecticut Public, la emisora local de NPR y PBS del estado, que busca elevar nuestras historias latinas y expandir programación que alza y informa nuestras comunidades latinas locales. Visita CTPublic.org/latino para más reportajes y recursos. Para noticias, suscríbase a nuestro boletín informativo en ctpublic.org/newsletters.

The independent journalism and non-commercial programming you rely on every day is in danger.

If you’re reading this, you believe in trusted journalism and in learning without paywalls. You value access to educational content kids love and enriching cultural programming.

Now all of that is at risk.

Federal funding for public media is under threat and if it goes, the impact to our communities will be devastating.

Together, we can defend it. It’s time to protect what matters.

Your voice has protected public media before. Now, it’s needed again. Learn how you can protect the news and programming you depend on.

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