Sharing Netflix Password No Longer Free: OTT Giant Begins Charging In Over 100 Nations

The OTT platform’s latest move aims to generate revenue by finding new ways to address market saturation.

Netflix, one of the most popular OTT platforms, has finally cracked down on password sharing after nearly a year of warnings and tests. Contrary to its 2017 statement that 'love is sharing a password', the company has announced its plan of action to crack down on password sharing in more than 100 countries.

Netflix expanded its crackdown on password sharing to the US and more than 100 other countries, alerting users that their accounts cannot be shared for free outside of their households https://t.co/DHpSqPFUT7 pic.twitter.com/BudSwxBzb1 — Reuters (@Reuters) May 24, 2023

Love is sharing a password. — Netflix (@netflix) March 10, 2017

Reasons behind the crackdown

The streaming platform has implemented password borrowing limitations and introduced an ad-supported option, as part of efforts to address market saturation.

On Tuesday, customers in 103 countries and territories received emails from Netflix including the United States, Britain, France, Germany, Australia, Singapore, Mexico, and Brazil. The emails stated that only one Netflix account may be used within a single household.

The US: OTT platforms largest user base

According to ABC News, the California-based company holds roughly 70 million US account holders. An added fee would be charged here for the paying customers, outside their residence. This fee amounts to $8 (Rs 660) per month. Additionally, members can transfer a person's profile, preserving their viewing history and recommendations, to ensure a seamless transition.

The measures come as Netflix continues to test approaches and policies to curb account sharing, an activity estimated to affect over 100 million households globally. According to the OTT platform, there were 232.5 million paying subscribers worldwide as of March.

The rude awakening

Although the change comes after months of warning, members have now been receiving emails informing them of the changes. The users took it as a rude awakening. Many took to Twitter to express their emotions. A user compared “Netflix in 2017: “Love is sharing a password” to "Netflix in 2023:I think we should see other people…”

Netflix in 2017: "Love is sharing a password"

Netflix in 2023: "I think we should see other people_" https://t.co/2pZziZC6uB — Tears of the Vonte (@NepSwirlRedux) May 23, 2023

Bidding adieu to the good old days, another user wrote, “RIP the days of sharing your parent's Netflix password with half the school.”

Rip the days of sharing your parents Netflix password with half the school. — Scopey_13 (@Scopey_13) May 23, 2023

A user condemned the action sharing, “Netflix making divorced families, elderly grandparents, college kids who live far away from home etc. pay extra for 'password sharing' when they refuse to pay their writers fair royalties is absolutely ridiculous. Where do you get off thinking people will be cool with this!”

netflix making
divorced families, elderly grandparents, college kids who live far away from home etc. pay extra for "password sharing" when they refuse to pay their writers fair royalties is absolutely ridiculous. where do you get off thinking people will be cool with this! — shannon (eras tour 5/20 and 5/27! _) (@holygroundsound) May 23, 2023

Here are some other reactions:

_ pic.twitter.com/KHCPlcMQse — Komrade + Kommander (@KMNDR_) May 23, 2023

Netflix charging $8 to password share? Bye pic.twitter.com/PSg2HhpL4L — hasanito (@fagiotinii) May 23, 2023

And they think this will bring them new customers pic.twitter.com/Q4Vy2TseQP — The_Sleepy_Guy____________ (@TheStupidGuy9) May 23, 2023

Currently, the password crackdown has not been implemented in the Indian market but can be expected in the near future.