If Netflix were to automatically levy new fees for account sharing, besides angering customers - who have engaged in password-sharing for years with Netflix’s wink-and-a-nod approval - it would attract scrutiny from regulators over potential anti-consumer billing practices. The company’s help page on password sharing currently says, “Netflix will not automatically charge you if you share your account with someone who doesn’t live with you.” That’s unlikely to change in the near future. Netflix also has prompted users to verify their credentials by sending a verification code to the primary account-holder.Īnd if customer don’t pay up for password piggybackers? All signs indicate that the most aggressive Netflix intends to get in the first iteration of the paid-sharing rollout is to keep prodding violators with email reminders and notifications. In the three test markets, Netflix has notified members who appear to be sharing their account outside their household (detected based on data such as IP addresses, device IDs and account activity from devices signed into the Netflix account) about the new payment options. the cost of sub-accounts could be $3.50-$4.50 each. In Chile, Costa Rica and Peru, that fee has been 23%-29% of the Netflix Standard two-stream plan, which suggests that in the U.S. Netflix hasn’t disclosed what an Extra Member sub-account would cost in the U.S.

In fact, Netflix’s password-sharing-monetization plan is essentially based on the honor system.

Recent headlines about the initiative - “The End of Netflix Password Sharing Is Nigh” (Wall Street Journal) and “The End of Free Netflix Password Sharing Is Coming” (CNET) - have made it seem like the company will starting enforcing the no-account-sharing rule with punitive measures. That will encourage password-sharers to create sub-accounts (“Extra Members”) and pay for people outside their households.

In early 2023, Netflix plans to roll out “a thoughtful approach to monetize account sharing,” expanding beyond its initial test markets in Latin America, the company said in October. Beginning next year, Netflix will start nagging customers to pay extra if it detects that they’re sharing their account with individuals outside their household - in violation of the streamer’s terms of use.īut users determined to continue flouting Netflix’s password-sharing rules won’t face any draconian repercussions for now: The company will not terminate someone’s account even if they’re sharing passwords, nor is Netflix likely to impose additional fees without a customer’s consent.

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