Netflix’s Password-Sharing Crackdown Sparks Conversations and Compromises among Subscribers
Netflix’s recent implementation of stricter password-sharing policies has triggered a series of awkward conversations across America as families and friends grapple with limited slots for account sharing. Subscribers who have been accustomed to sharing their Netflix accounts with non-household members now face the decision of either paying for additional slots or choosing which individuals will continue to enjoy the convenience.
Prior to the crackdown, Netflix disclosed to investors last year that over 100 million households—defined as individuals living under the same roof—accessed the streaming service using accounts that did not belong to their household. However, since the policy change was initiated in May, account holders have had to navigate discussions about who will have access to the limited one or two password-sharing slots available for a fee.
For avid Netflix viewers with a large number of account “hangers-on,” the situation has prompted negotiations and compromises. The Wall Street Journal highlighted the story of the Bryan family from Knoxville, Tennessee, who decided against allowing any of their three adult children to remain on the family account due to Netflix’s restriction of two sharing slots. Instead, the father offered a Microsoft Office family plan to provide the children with access to programs like Excel, PowerPoint, and Word—tools that may be less entertaining than streaming Netflix but potentially more useful.
Chloe Bryan, the daughter, shared her experience with the Journal, stating that her father’s alternative offer was meant to appease her. She mentioned that she plans to return to the streaming platform after exploring the Microsoft Office family plan.
Netflix’s revised account-sharing policies now allow users on the standard $15.49 per month plan to pay an additional $7.99 to enable one other person to share their account. Meanwhile, the premium plan, priced at $19.99, grants an extra sharing slot.
To accommodate former “freeloaders,” Netflix introduced a profile transfer feature. This allows users who previously shared an account to transfer their viewing profile and preferences to their own independent account. By doing so, these users can retain their viewing history and preferences without the need to start from scratch or reconstruct their watchlist.
Interestingly, following the implementation of the password-sharing crackdown, Netflix experienced a surge in new subscriptions from May 25 to May 28. This period marked the largest four-day growth in subscribers since Antenna began tracking Netflix’s subscriber growth in 2019. On May 26 and 27 alone, the streaming service reportedly gained 100,000 daily sign-ups.
While the crackdown on password sharing has led to some difficult conversations and adjustments for Netflix subscribers, the platform’s introduction of new features and the uptick in new subscriptions suggest that the changes have not deterred the platform’s popularity. As viewers adapt to the revised policies, it remains to be seen how the landscape of account sharing and subscription patterns will evolve in the coming months.