Netflix Starts Long-Awaited Password-Sharing Crackdown—Here’s How

TOPLINE

Netflix users in the U.S. will no longer be able to share accounts with others who don’t live with them, the company announced Tuesday, after the same password crackdown was instituted in four other countries earlier this year.

KEY FACTS

Netflix told U.S. users an “account is for use by one household,” urging subscribers to sign out their accounts on devices that “shouldn’t” have access to the user’s account, and set a primary location for the account.

Netflix users who want to share their account with someone outside their household can either pay $7.99 for a “sub account” or they can transfer a profile to a new membership that someone else pays for—a move that would allow users to keep their watch history and saved list.

Users will still be able to watch Netflix from their personal devices or log into new TVs at hotels or other locations, the company said.

KEY BACKGROUND

Earlier this year, Netflix announced it was instituting password-sharing restrictions in Canada, New Zealand, Portugal and Spain. At the time, Netflix said similar measures would be coming to the U.S. in the coming months. Netflix began testing paid sharing, with the same restrictions U.S. users will now face, in its Latin America market last year. Netflix is one of the first major streaming services to start cracking down on password sharing, in a move likely prompted by last year’s loss of subscribers and the need for additional revenue.

BIG NUMBER

100 million. As of February, that’s how many households share their passwords, Netflix said.

Forbes Daily: Get our best stories, exclusive reporting and essential analysis of the day’s news in your inbox every weekday.Sign Up

You may opt out any time. By signing up for this newsletter, you agree to the Terms and Conditions and Privacy Policy

FURTHER READING

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

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

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

CORRECTION (5/23): This story has been updated to clarify that Netflix users will not have to set a primary location and to clarify that users will not need one-time access codes to log into Netflix from other locations.