Netflix is preparing to charge for password sharing: Here’s what we know

(NEXSTAR) – Whether you’re sharing a Netflix password with someone or borrowing theirs, be prepared to start paying for it. The streaming giant has been warning that a password-sharing crackdown was imminent, and it appears they are nearly ready to roll out some new rules.

In a letter to shareholders last week, Netflix said it expects to roll out paid account sharing “more broadly” toward the end of the first quarter of 2023. Netflix estimates more than 100 million households share accounts, which “undermines our long-term ability to invest in and improve Netflix.”

Executives explained in the letter that they expect some users to cancel their accounts when paid sharing is launched but that “borrower households” will start their own accounts.

How the paid password sharing will be enforced, and how much it will cost, haven’t yet been released.

Features Netflix tested in Latin America last March cost roughly $3 or $4. During last week’s earnings call, COO and Chief Product Officer Greg Peters said the company is working to find “the right price points.”

Netflix was already exploring ways to crack down on password sharing in 2021 when it tested out a log-in verification process. If a user the company suspected was not the account owner tried to log in, Netflix would send a code via email or text to the account owner. That code needed to be entered within a certain amount of time, or the user would not be able to access the service.

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