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Netflix announces its measure to end shared accounts which will include a surcharge in 2023

Netflix has announced that only people within the same household can share a Netflix account, whoever is outside will pay extra.

FILE PHOTO: A smartphone with the Netflix logo is seen on a keyboard in front of displayed "Streaming service" words in this illustration taken March 24, 2020. REUTERS/Dado Ruvic/File Photo
Dado RuvicREUTERS

Changes are coming to the politics of sharing streaming service passwords.

According to Netflix, those who share passwords with members of their household are abiding by the terms of service, while those sharing passwords with outsiders are in violation. The company, which has investors concerned over the firm’s long-term profitability, has announced new steps to reduce the sharing of accounts.

Pew Research found that two in five adults have access to an account that no one in their house pays for. Netflix has cited the problem of sharing passwords and accounts as a serious revenue loss factor, and they are not alone.

Starting in November, Netflix will begin to offer three streaming plans:

  • Basic with ads: $6.99/month (Watch on one device)
  • Basic: $9.99/month (Watch on one device).
  • Standard: $15.49/month (Watch on two devices)
  • Premium: $19.99/month (Watch on four devices.

Netflix shuts down account sharing

Netflix has wanted to review and make it clear that only people who live in the same household can use an account opened on its service and that if it detects that this requirement is not met, next year the company will begin charging users more.

On their website, they provide guidance on what they mean.

“People who do not live in your household will need to use their own account to watch Netflix.”

So for the millions that share accounts, Netflix recommends you browse their plans. “It’s easy to sign up for Netflix, and we offer a variety of plans. As always, members can change plans or cancel at any time.”

Once a device has been used to stream, the firm will be saving that information and may ask the viewer to verify that it is them watching if more than one device (or the allotted amount) is detected.

Netflix knows where you are

However, for users on the same interest connection " to the same internet connection, users will not be asked to verify their device. Netflix will be recovering data on the connection to match it to potential logins in other places.

They even clearly state on the website, “Netflix can tell if the account holder’s home Internet connection is being used.”