For years, Netflix turned a blind eye to password sharing because it was fueling growth. But the streamer suffered heavy subscriber losses last year, and said that password sharing hurt its revenues and therefore limited its ability to invest in new content.
It's one of the first major streaming services to put limits on password sharing, a move that comes after Netflix experienced its first subscriber loss in a decade—losing almost a million during the summer of 2022, though it regained those declines in the second half of the year.
Netflix password sharing fees have arrived, as the company gambles that rising prices will offset subscriber losses. The long-touted Netflix password sharing rules landed in the United States streaming market in May.
Quarterly Netflix paid streaming subscribers in the U.S. and Canada 2013-2023. Netflix reported 75.57 million paid streaming subscribers across the United States and Canada in the Second quarter of 2023. This marked a decline of about two million compared with the same quarter of the previous year.
A Netflix account is for use by one household. Everyone living in that household can use Netflix wherever they are — at home, on the go, on holiday — and take advantage of new features like Transfer Profile and Manage Access and Devices. We recognize that our members have many entertainment choices.
Account holders can add more people outside of the household for an extra $7.99 a month, or they can use the "transfer profile" feature to prompt extra users to make their own accounts that they pay for, Netflix said Tuesday.
Adding extra households to your Netflix account
Members on a Standard or Premium plan can purchase additional member slots for people outside their household. Those additional members get full access to the subscription tier of the primary account holder but get their own unique account and password.
Despite the United States being Netflix's leading market in terms of subscriber numbers, Australia and the United Kingdom had higher penetration rates.
Based on the latest financial disclosure, Netflix has a Probability Of Bankruptcy of 2.0%. This is 96.13% lower than that of the Entertainment sector and significantly higher than that of the Communication Services industry.
Search Terms Are Surging
"'Cancel Netflix account,' 'Cancel Netflix,' 'Delete Netflix,' US-based searches rose 382%, 214%, and 162% in the last seven days as Netflix announced its plan to crack down on password-sharing users," the report's authors write.
Netflix's crackdown on password sharing begins in Australia. You'll now need to pay an extra $8 a month to share outside your household.
How does Netflix know that you're sharing someone else's password? Netflix says it uses a combination of IP addresses, device IDs, and “account activity from devices signed into the Netflix account” to determine if an account is being used in the primary account holder's household.
What do Netflix plans cost in Australia? Netflix Australia pricing starts at $6.99 per month for an ad-supported entry-level service, $10.99 per month removes ads, $16.99 per month gets you 1080p streaming, and $22.99 per month gets you the best possible plan with all the bells and whistles.
Netflix's new rules come with two options for account sharers. If you want to keep another profile outside of your household on your account, you can pony up $7.99 per month for another member.
Netflix is rolling back the ability for users to share passwords It was fun while it lasted. Once a cornerstone of its marketing strategy, Netflix is rolling back access to shared passwords.
The best way to bypass the Netflix password sharing ban is to use NordVPN Meshnet. The Meshnet feature is available for free for everyone. It helps you and your friends use the same single IP address on up to 60 devices at once.
The rising cost of Netflix
Naturally, the biggest reason is the simplest: The price keeps going up. The most basic Netflix plan now costs $10 per month, compared with $8 per month for Disney+ or $4.99 for Paramount Plus.
Why did Netflix's stock drop? The miss on revenue -- which Reif Ehrlich called a "modest disappointment" -- was enough to send the company's stock tanking.
Total debt on the balance sheet as of March 2023 : $14.43 B
According to Netflix's latest financial reports the company's total debt is $14.43 B. A company's total debt is the sum of all current and non-current debts.
Europeans and Asians watch the least Netflix
At the other end of the scale are Qataris who have watched less than half the average Netflix viewer. Having watched an average of 30,811 minutes of Netflix, Qataris have consumed 1,466 hours (over 61 days) less than Peruvians.
As of 2022, Netflix is streaming in over 190 countries, not including China, Crimea, North Korea, Russia or Syria.
According to a study, 47% of American citizens prefer Netflix over other web streaming platforms. As of Q2 2023, the Europe, Middle East, and Africa have the highest number of paying customers. They gather around 79.81 million Netflix customers between them.
The account owner will need to purchase an extra member slot, then invite an extra member to use the extra member slot. The extra member must be activated in the same country where the account owner created their account. Extra members cannot be added to Netflix-included packages or third-party billed accounts.
With a Standard subscription, you can watch Netflix on two screens at the same time. Those with a Premium plan are able to watch Netflix on four screens at once.
Netflix says an account can only be used by members of one physical household, sharing one internet connection.