Everything About Netflix’s Upcoming Password Sharing Rule

What are the new password sharing rules all about?

Remember when Netflix said that “Love is sharing a password?” This seems to have not aged well. The streaming site recently announced that it will begin pushing its password sharing rules to certain countries.

Netflix accidentally released information on the new rules on February 1. This caused quite a stir up online days before the company revoked it.

So, what are the new password sharing rules all about?

Netflix’s password sharing rules

The new password sharing policies prevent users from using the same Netflix account from separate houses.

Under those regulations, Netflix would ask users to verify their home devices monthly. The rules prohibit devices outside the home and customers would have to pay extra for access.

Netflix shared that around 100 million households share their accounts with others. However, the streaming platform indicated that this is “impacting our ability to invest in great new TV and films.”

The restrictions would not affect users’ ability to watch on a new or separate device. Logging your account on a TV in a hotel or vacation rental would still work fine.

Netflix’s CEO Gregory Peters says the company is looking to monetize viewing value through the new policies. He says the streaming site aims to get subscriber growth back on track.

“We’ve got folks that are watching Netflix who aren’t paying us as part of borrowing somebody else’s credentials,” Peters says during Netflix’s recent earnings call.

He adds, “Our goal is over this year to basically work through that situation and convert many of those folks to be paid accounts or to have the account owner pay for them.”

Netflix stands by its decision to limit access to users’ accounts. “A Netflix account is intended for one household,” the company says.

Canada, New Zealand, Portugal, and Spain are the first countries who were rolled out with the new password sharing policies. More countries will adapt to the rules in the coming months.

Banner Image Paulo Correa

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