Netflix is reportedly planning to crack down on password sharing among its users and the clampdown may occur as early as March 2023.
The streaming giant is also considering introducing an ad-supporting service on its platform. Netflix has stated that account sharing has a significant impact on the company's long-term plans and undermines its ability to invest.
"Later in Q1, we expect to start rolling out paid sharing more broadly. The account sharing seriously impact the company's long-term plans and undermine its ability to invest," Netflix was quoting as saying by The Economic Times.
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To address this issue, Netflix plans to end password sharing outside of a household. This means that a Netflix account holder, regardless of the number of screens they have chosen, will only be able to use the service within one household.
However, Netflix will offer a new paid sharing plan that will allow users to access accounts in different households. The company has not provided many details about pricing outside of Latin America, but users can expect password sharing to cost less than the price of a new account.
Netflix has already launched a paid password sharing model in Argentina, the Dominican Republic, Honduras, El Salvador, and Guatemala, where it costs $2 or $3 to add a member account for someone outside of one's household.
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The company will detect password sharing through IP addresses, device IDs, and account activity to check which devices are using an account within the same household.