Aria Rose and her partner were queuing up the new season of “Black Mirror” on Netflix last month when they got a dystopian message of their own: No more Netflix.
Rose, from Greensboro, North Carolina, is one of many Netflix users to have recently been given the heave-ho from the streamer, because she previously used a shared account.
The streaming service has become serious about stopping its subscribers from sharing their passwords with family, friends and ex-boyfriends you forgot were still using your log-in. The new policy, which went into effect May 23, is designed to prevent sharing passwords with anyone outside of a designated “household” − unless you want to pay extra.
The goal is to get the freeloaders to become new paying customers, but not everyone is willing to cough up the cash. “My partner and I are just not going to have Netflix from now on,” Rose says. She’s frustrated at being asked to pay more for streamers that are making less television for her to watch.
It’s a big change in policy and tone for a streamer that once promoted password sharing as part of its marketing strategy. So far, it has spelled more money and subscribers for Netflix, according to their latest earnings report, but it’s also angering and alienating its user base, some of whom are canceling the service outright. Here’s what you should know about the policy, and why it’s probably here to stay (and may even spread to other streamers).
What is Netflix’s new password sharing policy?
Starting May 23, use of your Netflix account has been limited by location and devices.
“A Netflix account is for use by one household,” explained the official announcement. “Everyone living in that household can use Netflix wherever they are − at home, on the go, on holiday.”
You can set your household up manually or Netflix will do it for you, based on IP (internet protocol) address information for your account. If someone is using your account a few states away, they’re likely to be bounced from the platform.
Now you either have to transfer your friends and relatives’ profiles to a new membership they pay for, or pony up to continue sharing your account with them. Netflix calls this adding a new “member” to your account, and it’s $7.99/month, less than the previous “Basic” ad-free plan ($9.99/month) but more that the new “standard” plan with ads ($6.99). Netflix is phasing out that Basic plan for new and rejoining customers, in an effort to encourage more users to subscribe to the ad-supported plans, but any current subscribers can keep it.
If you travel frequently, have a second residence or need to use Netflix outside your home regularly, there are ways to make sure you don’t lose access to your account. But these workarounds have limits and can be multi-step processes. If you have a second home, you need to first open Netflix on a mobile device on the primary WiFi network, and then secondary location, at least once a month to maintain access. If you travel to different places frequently, Netflix offers codes to allow you to log in on new TVs in hotels or rentals, but users report obtaining too few codes per month, which can be limiting for professions like travel nurses, salespeople or writers.
Are Netflix users happy with the new password sharing crackdown?
Not really.
Jennifer Dedross, 39, a travel blogger who currently lives in the U.K., has confounded Netflix’s new system with her mobile lifestyle. “Just in the last month, I’ve been in three different countries, four different cities and five different hotels/apartments … Right now, I’m in a hotel and I can’t get another Netflix traveling code because I already used it. … If something doesn’t change, then I will be canceling.”
Others have already canceled, or declined to pony up for a new account after losing access to someone else’s. Brayden Simms, a 41 year-old copy editor from Boulder, Colorado, canceled his account. “I just feel like everyone is struggling for cash right now, and we are all looking for ways to cut back and live a more sustainable lifestyle. Meanwhile, the number of monthly subscriptions we are expected to pay is going up and up,” he said.
Rose, who will not be watching the new “Black Mirror” season after all, doesn’t mince words when discussing her changed opinion of the streamer.
“Netflix and all the other streaming services are going to bring their own demise.”
No more ‘basic’ plan:Netflix switches up pricing plans for 2023: Cheapest plan without ads now $15.49
Is the Netflix password crackdown working?
The short answer is yes.
On Wednesday Netflix released its second quarter earnings for 2023 and led by touting gains resulting from the password crackdown. “Revenue in each region is now higher than pre-launch, with sign-ups already exceeding cancellations,” Netflix’s letter to shareholders said, noting there were 5.9 million additional subscribers added in countries where the company introduced the password crackdown. Although some of that growth can be attributed to the introduction of cheaper, ad-supported tiers of the service.
Outside data supports the idea that new subscriptions are offsetting angry cancelations. According to Parrot Analytics, demand for the streamer’s library actually increasedby 4.5% in the month following the crackdown in the U.S. And it’s still the top streamer: Netflix can boast 17.1% of the share of audience demand in the May 23-June 23 window, which is larger than rivals such as Hulu (15%), Max (13%), Amazon Prime Video (11%), Disney+ (9%) and Apple TV+ (1%) in the same timeframe.
So while the new system is inconvenient and angering for many Netflix users, the policy is working for the company, and unlikely to change anytime soon.
Will other streamers have similar password crackdowns?
It might just happen, because big business is as susceptible to peer pressure as anyone else. After streamer Max (formerly HBO Max) began excising titles from its library last year as a cost-cutting measure, others quickly followed, including Paramount+, Disney+ and Starz. Netflix executives once swore they would never put commercials on the platform, but after ad-supported tiers were successful on other streamers, Netflix added their own.
So if you’re sharing other accounts, you might want to enjoy them while you can. Just in case.
If you need it:Here’s how to cancel your account after Netflix ban on password sharing.
