Netflix will introduce its paid-sharing account before the end of March.
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Netflix told shareholders that it will introduce a paid-sharing account by the end of March.
That’s because it’s trying to stop users sharing their password with those outside their household.
It follows a trial period in Latin America, where it cost up to $3 per month to add an extra member.
You’ve got less than 10 weeks to continue sharing your Netflix account with anyone outside your household before the company introduces a paid system.
Netflix first hinted at a crackdown on password sharing last July, after its first subscriber loss in over a decade — totalling 200,000 users — during the first quarter of 2022.
In Sunday’s letter to shareholders, Netflix said it would introduce a paid-sharing system during the first quarter of this year. That means by the end of March at the latest, you’ll no longer be able to give out your password for free.
“As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with,” the letter added. Subscribers will be able to transfer a user profile to a new account as well.
Paid sharing has already been trialed in Costa Rica, Chile, and Peru, where it cost $2 to $3 to add an extra member account for someone living outside the household. Peruvian Netflix subscribers told Rest of World that the policy was confusing, and they hadn’t been subject to any enforcement of the rule.
The letter to shareholders says some Latin American users canceled their subscriptions as a result of the change. Netflix therefore expects that near-term engagement will fall, but as people who borrowed accounts begin subscribing themselves, overall revenue should improve.
This new subscription follows the November launch of an ad-supported tier, which can see up to five commercials an hour. At $6.99 per month, “Basic with Ads” costs $3 less than the cheapest ad-free tier.
Netflix did not immediately respond to Insider’s request for comment.