Netflix's password sharing crackdown: Here's what you need to know trends now
In an effort to boost its dwindling fortunes, Netflix is finally cracking down on password sharing and forcing streaming 'freeloaders' to part with their money.
Under new rules, people watching Netflix using someone else's account will have to create their own logins and pay for their own accounts as soon as March.
Alternatively, those who still want to share an account with people in a different home will have to sign up to 'paid sharing' at a cost of a few extra pounds a month.
Here's everything you need to know about the password sharing crackdown at Netflix, including how it will work and when it will be enforced.
Netflix will finally ban password sharing and stop 'freeloaders' from being able to access the platform for free through someone else's account
WHAT IS PASSWORD SHARING?
Password sharing is a habit adopted by Netflix users of distributing their password to other people who live outside their household.
This lets these so called 'freeloaders' access their account, create their own profile and watch films and TV shows without paying a penny.
According to the Intellectual Property Office, password sharing on Netflix and other video streaming platforms breaks copyright law and is therefore illegal.
However, it is down to the companies themselves to take action through the courts if required – and there is no suggestion yet that Netflix would attempt to do so.
For years the Netflix terms of service has said users of an account must live in the same household, but its not taken any solid action until 2023.
'Today's widespread account sharing undermines our long-term ability to invest in and improve Netflix, as well as build our business,' Netflix said in its letter to shareholders on January 19.
Netflix wants to make people with profiles on Netflix pay for their own account rather than 'freeloading' off someone else's (file photo)
'While our terms of use limit use of Netflix to a household, we recognise this is a change for members who share their account more broadly.'
WHY IS NETFLIX STOPPING PASSWORD SHARING?
Ultimately Netflix is banning password sharing because it wants more of our money, although the whole story is slightly more detailed.
On Netflix, a single account can host up to five 'profiles', each individually named and curated for a particular person.
Each person can enjoy customised features – such as algorithmically-powered viewing recommendations, viewing history and settings – on their profile.
Netflix originally designed this feature so that multiple members of a household, such as children, can enjoy content without having to start their own Netflix account and pay the monthly fee.
But until now there's been nothing to stop it being used across multiple homes, even though the Netflix terms of service have long said users of an account must live in the same household.
On Netflix, a single account can host up to five 'profiles', each individually named and curated for one person. Here, Anna is the account holder; the others are just profile holders
In effect, it has meant that five people living under five different addresses can have their own profile under one account – in other words, five different people getting Netflix for the price of one.
According to Netflix, this act deprives it from a potential revenue source, and 'undermines our long term ability to invest in and improve our service'.
WHAT'S NETFLIX'S SOLUTION TO PASSWORD SHARING?
Throughout 2023, Netflix is going to roll out a new feature globally called 'paid sharing', which is
