Netflix is changing its password policy and will start charging people for sharing accounts.
Currently, a Netflix account owner can add a maximum of five profiles to their account.
These profiles will become paid sub-accounts from the beginning of 2023.
Netflix will now only allow one “home” per account, and other homes will have to pay extra to use the same account, the company announced this week.
You can still use a Netflix account outside of your physical home—on a tablet, laptop, or phone—but it’s technically a single account to which you can add sub-accounts.
Netflix will begin rolling out these features in early 2023.
Members with a basic package can add one more home, standard packages can add up to two more homes, and premium packages can add up to three more homes. People who borrow someone else’s Netflix password can transfer that Netflix profile to a new account.
This means they can see their watch history and recommendations in their new account.
People who shared their passwords with others can now easily create and manage sub-accounts with the new model. “Another component of this, though, is allowing account owners to be able to pay for Netflix for some friend or family, somebody they want to share the service with,” Peters said.
“And so they’re able to create a sub-account, which we’re calling extra member, to enable that model, too.”
Charging for sub-accounts isn’t the only new revenue stream for Netflix launching in 2023. Customers will be able to pay for a basic version of the streaming platform that costs less but comes with ads. Peters said the “Basic with Ads” plan option “will bring in a lot more members,” and “lead to a significant incremental revenue and profit stream.”
