Netflix password sharing will come to a stop in 2023. As a streaming service, Netflix has had a turbulent year. Netflix announced a significant decline in subscribers not long after the first fiscal quarter of 2022 came to an end. Since then, Netflix has experimented with various subscriber-growth strategies, one of which was the debut of a lower-tiered, ad-supported subscription tier in November of last year. Another suggestion was to prohibit password sharing among users, which may now become more popular.
In 2023, Netflix says it will stop password sharing, so the dreaded practice is finally about to end. According to the Wall Street Journal, Netflix intends to put in place procedures that would charge customers for sharing their credentials with devices that aren’t inside their houses. This mechanism, which prompts users to input a validation code on screen after logging in and expires after 15 minutes, is already being tested by Netflix in Latin American nations’ versions of the service. The primary account holder has the option to add up to two users if users wish to avoid going through this process while signing in.
Will This Aid in Increasing Netflix Subscribers?
The motivation behind this adjustment at Netflix is still quite clear—the streaming service is keen to try and increase members. Cracking down on password sharing is an effort by Netflix to attract new members rather than depending on the ones they already have who are urging friends and family to join their subscription with them. This is similar to their ad-supported subscription tier. They believe that by restricting the number of people outside the home who have regular access to Netflix accounts, individuals who were previously unsubscribed would be encouraged to do so.
However, since Netflix’s ad-supported membership tier has reportedly been the least popular on the site, the streaming service may not see the significant subscriber gain they are hoping for if the password-sharing prohibition goes as well as Netflix’s other adjustments have. The fact that popular programs like Arrested Development and House of Cards are not featured on the new pricing tier has also been brought up by users, which naturally irritates viewers who were searching for a less expensive option to the full Netflix experience. Early reports from the Latin American password-sharing testing indicate that users have already voiced their dissatisfaction with how Netflix’s anti-password-sharing version is functioning.
Alternately, the prohibition on sharing passwords can wind up increasing the number of users who subscribe to the ad-supported site. A person may be more likely to create their own account at the $6.99/month pricing point if they can no longer use someone else’s or their parent’s Netflix membership. In this regard, some people might think it was wise of Netflix to introduce the ad-supported plan initially. Customers who are devastated by the loss of a free Netflix experience now have a less expensive option to watch their daily fill of Wednesday, Sex Education, or The Sandman, but time will tell if they take advantage of this as Netflix launches its password-free self in 2023.