Netflix has given details on how it intends to crack down on subscribers that share their passwords with friends and family.
Announcing what it described as a “thoughtful approach”, the streamer said it planned to introduce the feature early in 2023, following trials in a number of test markets. Netflix doesn’t go so far as to describe its additional audience as pirates, preferring the term “borrowers”.
“After listening to consumer feedback, we are going to offer the ability for borrowers to transfer their Netflix profile into their own account, and for sharers to manage their devices more easily and to create subaccounts (“extra member”), if they want to pay for family or friends.”
In Latin America, where the scheme is already running the borrowers are charged $2.99 for each additional home
According to Nitsan Baider, director of product management at Synamedia, “As long as streaming services were growing steadily, password sharing was perceived as either a positive marketing tool or a minor nuisance you can live with. The economics has now changed. Streaming to 100 million subs is costly and doing it for free is no longer acceptable.”
Netflix had previously lived with password sharing, but its head was turned as overall subs fell, and a free lunch for 100 million was no longer palatable.
