Netflix to stop password sharing by end of 2022
Netflix the streaming video giant is likely to phase out the password sharing feature by the end of October 2022.
Netflix may have confirmed the timeline to start cracking down on password sharing. The streaming video giant is likely to phase out the password sharing feature by the end of 2022. As reported by the New York Times, Netflix executives in a note shared that a crackdown on password sharing is likely passwords start in the last three months of 2022, i.e. October.
It was previously reported that Netflix was testing adding a surcharge to subscribers who share their account details with other households. This was first tested in Chile, Costa Rica, and Peru, where a $2.99 surcharge was added to accounts that wanted to share their credentials outside the home. And now the same is likely to be implemented in all the territories where Netflix operates.
This decision was made after Netflix revealed that it lost almost 200,000 subscribers in the first three months of the year. This happened for the first time in a decade, and surprisingly, the company expected to lose two million more in the coming months. As a result, Netflix's stock price fell by more than $54 billion.
In a letter to shareholders as part of its first quarter earnings results in April, Netflix executives stated that around 100 million users shared a password with another account. So despite Netflix's 221 million paying subscribers, the actual number should be much higher. Not only this, but the streaming giant also revealed that it would start offering a lower-priced subscription with ads by the end of 2022. This means that users will get a Netflix subscription at a lower price, however, it will include ads. commercial. As of now, Netflix content is ad-free.
How the crackdown on Netflix's free password sharing service affect you?
As soon as this policy is implemented, sharing your Netflix account with anyone outside of where you live will cost you more. You will have to pay a surcharge to get Netflix on a device in someone else's home.