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Netflix has finally decided to crack down on password sharing, ending years of leniency toward sharing accounts with friends and family.
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In a blog post, Netflix announced that it will be sending emails to users whose passwords have been shared outside their households, informing them of the new policy.
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The new rule states that a Netflix account is strictly for use by one household, allowing everyone within that household to access the account from anywhere.
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To enforce this policy, Netflix has introduced two new features: "Transfer Profile" allows users to move a profile to a new account, and "Manage Access and Devices" lets users control the number of devices accessing their account.
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The rollout of this password sharing crackdown has already begun in the United States and other markets.
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While Netflix hasn't provided an exact timeline, users can expect to receive emails regarding the new policy soon.
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If users wish to continue sharing their account with people outside their household, they will have to pay an additional fee on top of their subscription.
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Adding an extra user to share your Netflix account will cost $7.99 per month, a 50 percent increase from the standard plan price.
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Netflix had previously announced plans to implement this change by the end of the second quarter, which aligns with the launch of a competitor streaming service, Max.
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The company's decision to limit password sharing comes after testing similar rules in select international markets last year.
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Account holders can still grant access to people within their household, even when they are traveling or on the go.
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The new policy aims to address the impact of password sharing on Netflix's ability to invest in new content.
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However, many consumers are unhappy with this change and have expressed their frustrations on social media.
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Some users find the crackdown on password sharing to be an inconvenience, especially considering the previous features like profiles that encouraged sharing.
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The reaction to the news has led to calls for canceling Netflix subscriptions.
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Netflix claims that over 100 million households currently engage in password sharing, while their total subscriber count reached 232.5 million in April.
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The company had already tested paid password sharing in international markets before expanding it to countries like Canada, New Zealand, Portugal, Chile, and Spain.
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In a letter to shareholders, Netflix reported positive results from these tests, including increased acquisition and revenue as users activated their own accounts and added "extra member" accounts.
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Despite the backlash and initial negative reactions, Netflix reported significant revenue growth in the first quarter of 2023.
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The revenue for the first quarter reached approximately $8.2 billion, compared to $7.9 billion in the same period of the previous year.