Netflix Details New Password Sharing Crackdown, Launches Paid Sharing Plan

Netflix is officially putting the boot to password sharing, launching their new paid sharing plan on Tuesday. The streaming service announced on Tuesday that they will begin sending emails to users with an update on sharing passwords, noting that users will be asked to set a household location on devices, noting that “Your Netflix account is for you and the people you live with — your household.”

Non-household members will be asked to either transfer their profiles to a new Netflix subscription, or can have the primary account holder at a non-household member for $7.99. Users will still be able to user their Netflix accounts while travelling at no costs.

Users on the $15.49 Standard plan will be able to add one non-household user, while those who have the Premium plan can add two (at $7.99 per non-household user). The Extra Member option is currently unavailable for members billed through third-party partners.

The change comes as Netflix has found its increases to subscriber count slowing. Netflix will be considering “Extra Members” to be those outside the vicinity of the main household’s Wi-Fi connection and will use IP addresses, device IDs, and account activity and more to determine if an account is part of a household.

Netflix first began introducing this feature plan in Canada, New Zealand, Portugal and Spain in February, and noted last quarter that it did see a “cancel reaction.” However, it noted that the reaction was similar to any time they have increased prices and added that in Canada, its paid membership bases is now bigger than it was before paid sharing launched.