Netflix to enforce stricter password sharing rules

We all know of at least one person who has never paid for a single streaming service and has access to all of them. All thanks for sharing the password. Recognizing the same trend and trying to stop it, Netflix is set to enforce stricter password-sharing rules "more broadly" by the end of Q1 2023. Also, people who share their Netflix password with members outside their households can pay an additional amount to continue doing so.

Netflix Notification

In its earnings report, Netflix said, "We expect to roll out paid sharing more broadly later in Q1'23. We anticipate that this will result in a very different quarterly paid net adds pattern in 2023, with paid net adds likely to be greater in Q2'23 than in Q1'23."

The company further added, "While our terms of use limit use of Netflix to a household, we recognize this is a change for members who share their account more broadly. So we've worked hard to build additional new features that improve the Netflix experience, including the ability for members to review which devices are using their account and to transfer a profile to a new account. As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don't live with. As is the case today, all members will be able to watch while traveling, whether on a TV or mobile device."

Netflix says, "From our experience in Latin America, we expect some cancel reaction in each market when we roll out paid sharing, which impacts near-term member growth. But as borrower households begin to activate their own standalone accounts and extra member accounts are added, we expect to see improved overall revenue, which is our goal with all plan and pricing changes."

Although Netflix hasn't really mentioned the markets it's set to roll out "paid sharing" for, it's safe to assume that India could be one of them.