Nuked Hey everyone, Nuked here! I wanted to share some news with you about Netflix’s upcoming changes to their password sharing policy.
Netflix announced today that they plan to enforce their password-sharing rules “more broadly” towards the end of the first quarter of 2023. This means that if you are sharing your account with people outside of your household, you may soon be required to pay an extra fee.
The company also announced that CEO Reed Hastings is stepping down after 25 years and will transition the role to Ted Sarandos, who had already been serving as co-CEO, and Greg Peters, Netflix’s former chief operating officer. Hastings will still remain with the company as executive chair.
Netflix has begun testing various ways to crack down on password sharing in South America and began prompting users in Chile, Costa Rica, and Peru to pay for an extra sub-account if the streamer detects that someone using the account lives outside their home. They have also rolled out a new tool that lets you remotely manage the devices using your account and log unwanted friends or family members out of your account.
In November, Netflix introduced the ability for users to easily transfer their profile — a way for the service to encourage users to open up their own account if they’re currently sharing it with a friend or family member. Netflix also rolled out an ad-supported tier in November.
Netflix says it expects some “cancel reaction” in each market but that the long-term benefits of people paying for additional accounts will result in “improved overall revenue.” The company hasn’t released any information on pricing or a specific date yet, but it’s expected to be available sometime in April.
In addition to introducing the paid password-sharing policy, Netflix is also looking to please investors as subscriber growth continues to slow. They released a strong slate of content over the past few months, including Glass Onion: A Knives Out Mystery, Wednesday, and Harry & Meghan. However, some reports suggest that their ad-supported tier may be struggling to take off.
It’s looking like 2023 could be a less exciting year for Netflix as they continue to limit content spending to $17 billion. They are still facing stiff competition from other streamers as its subscriber numbers plateau and it looks to capitalize off of the ones it already has.
Overall, Netflix’s upcoming changes are sure to have an impact on customers who have been relying on shared passwords for streaming services. While we wait for more information about pricing and availability, be sure to check back here for updates!
