Netflix Has Revealed How They're Gonna Be Cracking Down On Password Sharing

This could affect more than 100 million users.

In a letter to shareholders, the streaming giant Netflix has announced it will crack down on password sharing before the end of March.

Update [02/02]: Netflix has now revealed how they plan to crack down on password sharing. 

Under the new system, users must connect their devices to the Wi-Fi at their primary residence at least once every 31 days.

This will create a "trusted device" so you can always watch Netflix, even when you are travelling or away from your primary location. 

But if you're away for a long time (like 32 days), Netflix may block your device, and you'll have to use a "temporary access code to keep watching". 

The original story follows: 

Since Netflix launched its online streaming service, password sharing has become commonplace across the globe.

Currently, Netflix’s terms and conditions allow passwords to be shared amongst members of the same household, but Netflix has committed to cracking down on multi-household password sharing.

“While our terms of use limit use of Netflix to a household, we recognise this is a change for members who share their account more broadly,” Netflix told its shareholders.

To combat the issue, Netflix plans to introduce a new cost to customers sharing their accounts.

Netflix trialled this in eight Latin American countries last year, and if they follow the same pattern, Aussies will be paying about $4 extra a month.

“As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with,” Netflix said.

“As is the case today, all members will be able to watch while travelling, whether on a TV or mobile device.”

This means, if you’ve logged into Netflix at a mate’s place or have shared your account, you could be charged the extra fee.

Netflix’s research shows more than 100 million households worldwide have shared their password.

In the report, Netflix did admit that they may lose members or have a negative outcome due to the crackdown, especially if they don’t want to pay the extra money or create their own account.

“However, we believe the pattern will be similar to what we’ve seen in Latin America, with engagement growing over time as we continue to deliver a great slate of programming and borrowers sign-up for their own accounts,” Netflix said.

2022 was Netflix’s worst year on record, losing more subscribers than it gained for the first time in 10 years.

Netflix responded to the “tough year” by introducing a cheaper, ad-supported subscription for users.

If Netflix goes through with the changes, it'll certainly make this tweet from 2017 a bit awkward.