Netflix Password Crack Down Begins In Canada, New Zealand, Portugal, Spain

Topline

Netflix is cracking down on password sharing in four new countries, the company announced Wednesday, after weeks of discussion about what password sharing measures would mean for Netflix users who shared accounts with others but didn’t live with them.

Key Facts

Canada, New Zealand, Portugal and Spain are the latest countries to see password sharing restrictions instituted.

Netflix has already tested paid sharing in Latin America, where the company is charging users a small fee to add an extra member to their plan.

Under the password crackdown, users will be asked to set a primary location for the account, from there members will be able to control who has access to their account.

If a user does not set a primary location, Netflix will use the IP address and device ID and automatically set it up.

If users want to add an extra member “sub account” for up to two people they don’t live with, they can do so for an additional fee—CAD$7.99 a month per person in Canada, NZD$7.99 in New Zealand, Euro 3.99 in Portugal, and Euro 5.99 in Spain.

Users will also be able to transfer a profile to a new account to keep their watch history and saved list.

Users will still be able to watch Netflix from their personal devices or log into new TV’s at hotels or other locations by using one-time access codes, the company said.

Key Background

The buzz around password sharing began after a quarterly letter to shareholders was published last month which said the company would be intensifying its push to manage password sharing in the first quarter of 2023. Netflix is one of the first major streaming services to begin password-sharing crackdowns, and after a loss of subscribers last year, the company needs the extra revenue. Netflix has previously announced in 2022, they planned to put and end to password sharing after years of lenient policy for its subscribers.

Big Number

100 million. That’s how many households share their passwords with others, Netflix said.

Further Reading

Netflix’s Password Sharing Crackdown—And What Amazon Prime, Hulu, Others Are Doing—Explained (Forbes)

Netflix Password Sharing—Everything You Need To Know (Forbes)

Netflix Loses Subscribers As Disney+ Catches Up: Here’s How The Major Streaming Services Are Faring So Far This Year (Forbes)

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