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Netflix Paid Password Sharing: What Does it Mean for Users?

Whenever you sign up for an online service, the rule of thumb from day one is to keep your account details safe by never sharing your password with any third party. And this is especially so in cases where the service involves recurrent payments, as you’ll have connected your bank card or any other payment option. It could be your credentials to an iGaming site like Verdecasino com, an online shopping platform like Amazon, or even a ride-hailing account like Uber. Heck, to keep accounts more secure, it is usually recommended that we use two-factor authentication.

Interestingly, where many users draw the line for password sharing is apparently in streaming services. The practice is so prevalent that Netflix, the world’s leading streaming service, has recently announced plans to crack down on password sharing. A survey conducted by the company revealed that almost 20% of its users share their accounts with others. This move has raised questions among users about what this means for them and their access to the platform.

Why Does Netflix Want to End Netflix Password Sharing?

The main reason for Netflix’s crackdown on password sharing is to prevent revenue loss. Netflix’s subscription-based model means that the company relies on subscribers to pay for access to its content. Therefore, when multiple people share one account, it means that Netflix is not receiving the full subscription fees as it should. This can add up to significant revenue loss for the company, especially considering the high cost of producing and acquiring content.

Additionally, password sharing violates the company’s terms of service, which users agree to when they sign up for an account. Besides, sharing passwords also increases security risks to your Netflix account and other services where you might be using the same login credentials.

However, it is vital to note that Netflix has stated that it will not be immediately canceling accounts that are found to have breached its terms of service. Instead, the company plans to implement new technology that will detect and prevent password sharing and charge users who share their passwords extra. This means that users who are currently sharing passwords have options to avoid potential account termination.

How Much Will Netflix Charge for Sharing Passwords?

While Netflix has not publicly disclosed the cost of premium password sharing yet, the company is already running a pilot test in regions like Peru, Costa Rica, and Chile. So, for the said jurisdictions, the fee for every additional user with a password outside the primary household is about a quarter of what Netflix’s Standard plan costs.

Thus, if Netflix decides to use that approach across all its global markets, then each additional sub-member of an account would cost a subscriber in the USA roughly $4. By comparison, Netflix’s Basic plan, the cheapest subscriber tier for the USA market, costs a monthly fee of $7.

What Options Can You Consider Right Now?

Currently, however, the premium account-sharing option is yet to be publicly released by Netflix. However, the company revealed that it would roll out the account-sharing charges in a few regions in March and make it available across all its markets later. So, before the option is launched in your region, here are a few options for you to consider if you have to share your Netflix password:

• Upgrade to a Family Plan. Netflix offers a Family Plan that allows up to four people to share one account. This is an excellent option for users who are currently sharing passwords with a few friends or family members. This plan costs $19.99 per month for USA subscribers and can be shared among four profiles.
• Create a new account. Users who are sharing passwords with a large group of people may want to consider creating a new account to avoid risking the termination of their existing account.
• Get a separate account. If you are currently sharing passwords with someone you live with, getting a separate account might be more cost effective than upgrading to a family plan.

Password Sharing Is Not Just a Netflix Problem

It’s worth noting that password sharing isn’t only a problem for Netflix, other streaming services like Hulu and Disney+ also face similar issues. However, Netflix is the first streaming service to publicly address the problem and take steps to prevent it from spinning out of control.

Should it work for the top dog of streaming services, there’s a chance that the competition may follow suit by implementing similar measures. Until then, it remains to be seen whether Netflix’s paid password-sharing plan will work in the first place.