Netflix’s Account Sharing Crackdown Starts in ‘Early 2023’

Account sharing for Netflix is poised to become a lot harder for freeloading users early next year. 

Netflix plans on rolling out “a thoughtful approach to monetize account sharing” in early 2023, the company wrote in a shareholders’ letter(Opens in a new window) released alongside its Q3 earnings. 

This approach will allow existing Netflix subscribers to pay more money to add “extra members,” who will then be able to stream from the same account. The company already tested the system in three Latin American countries earlier this year, where Netflix charged customers an extra $2.99 to let someone outside their household view access their account. 

The company’s letter to shareholders doesn’t mention how it’ll crack down on account sharing. But Netflix will likely examine the IP addresses freeloaders are accessing the service from, and block ones that don’t match the IP address of the main account holder. 

(Photo by Jakub Porzycki/NurPhoto via Getty Image)

On Monday, Netflix unveiled how it’ll try to convert freeloaders into paying members by introducing a new “Profile Transfer” function, which is rolling out globally. To attract consumers on a budget, the company is also preparing a new ad-based Netflix membership that’ll cost $6.99 per month; that “Basic with Ads” Netflix tier launches on Nov. 3. 

The company is cracking down on password sharing amid stagnating growth. Back in April, the streaming giant estimated that 100 million households across the globe, including 30 million in the US and Canada, stream Netflix through shared accounts. 

The company is now hoping to capture some of that revenue. During the Q3 period, Netflix said it added 2.41 million news subscribers for a total of 223 million paying members. However, in North America, the company only added 100,000 new subscribers. 

Still, Netflix is predicting its growth will re-accelerate in the coming months and is projecting it’ll add 4.5 million new subscribers in Q4, despite the ongoing economic downturn. 

Netflix’s letter to shareholders also defended the company’s “bingeable release model,” which involves posting all the episodes for a TV series at once, instead of on a weekly basis. 

“We believe the ability for our members to immerse themselves in a story from start to finish increases their enjoyment but also their likelihood to tell their friends, which then means more people watch, join and stay with Netflix,” the company wrote.