Are you still sharing your Netflix password with people who don't live with you? You won't be for long.
In its Q2023 2023 letter to shareholders(opens in a new tab), the world's largest streaming service confirmed that it will begin a "broad rollout" of its password-sharing crackdown plan on the Internet. Q30 XNUMX. Use a friend or family member's Netflix account for free, and most importantly, live in a different household—you won't be able to access that account after June XNUMX.
The announcement comes months after Netflix tested its plan to crack down on password sharing in Canada, New Zealand, Spain, and Portugal in the first quarter of 2023. Those four countries initially canceled their subscriptions once it was released. introduced Netflix's password sharing crackdown system.
However, Netflix says it has seen a rise in new paid subscribers, as well as an increase in its "additional members" subscription package (which we explain in our article "how Netflix will prevent you from sharing passwords"), once the Initially the furor calmed down. . In the eyes of Netflix, these tests were a huge success and gave them the confidence to launch the show globally.
This isn't the first time we've reported on Netflix's attempts to crack down on inter-household password sharing. In April 2022, we revealed Netflix's plan to monetize account sharing, as the streaming giant looks to increase its revenue streams after a difficult period in Q2022 XNUMX that left it in financial straits.
Since then, Netflix has regularly informed its shareholders and customers of the effective date of the plan. Netflix was originally supposed to set its password sharing schedule before the end of 2022. However, it pushed that deadline back to the end of Q2023 XNUMX in January. Now, Netflix has once again delayed the implementation of its strategy, with the company looking to the end of the current quarter to implement its crackdown strategy.
With Netflix delaying the inevitable twice, there's no guarantee it'll officially stop password sharing until the end of June. However, the company's wide Q2023 30 launch window means it could also officially introduce this new measure before June XNUMX. Essentially, expect to start paying more – or, for those who don't have an account, having to create one – to watch the best shows and movies on Netflix.
New Netflix features to soften the blow
As Netflix explained, the launch of its crackdown on password sharing isn't initially suitable for current users, especially those who have freely used someone else's account. However, Netflix hopes that the introduction of new features to its lowest-priced subscription, the ad-supported tier, which Netflix has promised to expand after its slow pace, will persuade new users to sign up for their own account.
In its Q2023 720 shareholder letter, Netflix revealed that it will upgrade all features to its ad-based tier in the coming weeks. So what will subscribers of this plan get now? Basically, an increase in video quality, from 1080p to 18p, and the ability to simultaneously stream to two separate devices instead of one. These features have been made available to subscribers on the ad-based tier in Canada and Spain since yesterday (April 10), while the feature set will roll out very soon in the other XNUMX ad-supported tier markets.
So Netflix is clearly trying to entice new users to sign up for its cheapest subscription tier with these seemingly flashy new features. Based on the increase in subscriptions we've seen in Canada and the company recently, as well as the fact that Netflix doesn't want you to sign up for their basic ad-free tier, this is a strategy that could work in other territories, such as United States and the United Kingdom, once their plan to crack down on password sharing is unveiled around the world.
Of course, there's no guarantee that'll happen, especially with a number of other streamers (Hulu, Disney Plus, and Paramount Plus) that arguably offer better value for money (depending on which tier you sign up for). Even Warner Bros. super streamer Max. Discovery – read more about it in our article 7 Things HBO Max Fans Need to Know About Max – Could be more financially viable for streaming fans in markets where Max will be available ( will be released on May 23, FYI) than Netflix.
Therefore, Netflix is clearly hoping that its new strategies will give it several advantages in the never-ending race to be crowned king of streamers. Only time will tell if he really succeeds in this endeavor.
For more Netflix coverage, read our complete guide to sharing Netflix passwords. Otherwise, read all the new Netflix movies coming to the service in 2023, or find out when Netflix will finally stop shipping DVDs.
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