Netflix plans to monetise subscriber password sharing

Netflix subscribers face an additional fee in the coming months if they want to share their account credentials with users outside their own household, in an anticipated crackdown by the streaming giant on the sharing of passwords. Following trials across Central and South America, where password sharing has been particularly rife, Netflix intends to clamp down on subscribers who freely pass on their login details to their friends and family and instead now look to monetise this common practice. Interestingly Netflix are not seeking to prohibit the practice of subscribers sharing their accounts, but instead users will be allowed to do so by paying an additional monthly fee (this was $2.99 per month per home in the Central and South America trial). The move would allow existing customers to add an additional home (or homes, in the case of higher tier subscriptions) to their existing subscription package.

If successful, this initiative would prevent subscribers from logging in to their accounts to watch content at someone else’s home (including in a holiday rental) but, if Netflix pursue the same route as the trial, subscribers would still be able to watch content on their personal devices (such as a tablet, laptop or mobile) while on the move. It is unclear exactly how Netflix will implement the change in approach (in what is effectively an enforcement of Netflix’s current terms of use) and whether this in turn will boost Netflix’s growth following a difficult year and a continuing cost of living crisis. Although Netflix are anticipating a negative reaction following its experience in Central and South America, the future health of Netflix’s revenue and profits may well benefit in the long term.