Account Sharing on Netflix Ends March 2023, Accounts Can Only Be Shared with Families

JAKARTA – What Netflix 'freeloaders' have been worried about will soon arrive. The policy of sharing passwords will be banned at the end of March this year.

The Scotts Valley, California-based company shared the news in a letter to shareholders, noting that "widespread account sharing" had surpassed more than 100 million viewers.

However, these subscribers will be able to transfer their profile to a new paid account, allowing them to continue their preferences.

Netflix said 2022 had been a "tough year" as it lost its first subscriber in over a decade. In fact, its customer base fell by 200,000 customers in the first quarter.

"Today's widespread account sharing is undermining our long-term ability to invest in and improve Netflix, and build our business," Netflix said in a letter cited by the Daily Mail.

"While our terms of use limit use of Netflix to one household, we recognize this is a change for members who share accounts more broadly," Netflix said.

Netflix, is aware that some users will cancel their subscription account, but that share may transfer profiles if they choose to open their own account.

"We believe the pattern will be similar to what we have seen in Latin America, with engagement growing over time as we continue to deliver a good suite of programs and borrowers sign up for their own accounts," the company told shareholders.

Netflix has been trying to generate more revenue, while serving consumers.

In November 2022, they launched a 'Basic with Ads' subscription option for 6.99 US dollars per month, compared to an ad-free version for 9.99 US dollars per month. In that ad option, the advert, which lasts 15 or 30 seconds, plays before and during shows and movies.

Now ahead of its recent password-sharing ban, the streaming service has also revealed plans for a paid sharing option, for multiple users on the same account.

Under the new rules, people who watch Netflix using someone else's account must create their own login and pay for their own access.

Testing of new features is ongoing, while a platform-wide rollout is expected to take effect in late March.

To allow people to share accounts, 'paid sharing' will be added, allowing multiple users but for less than a full subscription.

The account comes with five 'profiles', but these are only for use by members of the same household.

"Each account comes with five profiles that can be used by every member of the household," said a Netflix spokesperson.

A new option is here when people want to share their Netflix account with friends and family who live elsewhere.