Netflix May Be Shutting Down Password Sharing Soon
Your ex-boyfriend's sister's best friend's Netflix password may soon not be enough to get you logged into the site for a binge session. Facing a sharp drop in subscribers, the company says it is considering implementing stronger preventative measures when it comes to password sharing.
Netflix is also considering ad-supported content to boost subscriber numbers.
The company estimates nearly 100 million people use the service for free via a paying subscribers' password. Not surprisingly, they would prefer to see some of that money.
"Those are over 100 million households already are choosing to view Netflix," Netflix CEO Reed Hastings said. "We've just got to get paid at some degree for them."
In some South American countries, Netflix offers a discounted rate for customers wishing to share their passwords with other households, typically about $3/month on top of the monthly subscription cost.
After gaining a company record 38 million subscribers during the pandemic of 2020, Netflix lost 640,000 subscribers in the United States and Canada in the most recent quarter.
A "basic" Netflix subscription costs $9.99 per month and includes the ability to watch one screen at a time. A $15.49 option allows subscribers to watch two screens and the most expensive option of $19.99 allows four screens to be viewed simultaneously.
The company is also considering a lower-cost option that would allow viewers to pay less per month while having to watch commercials during the content. Companies like Hulu currently have similar options.
In 2021 it was reported that Netflix over 221 million global subscribers.