Netflix’s New Password-Sharing Fees to Hit US Customers This Summer – CNET [CNET]

You can either pay more to share or urge your friends and family to get their own accounts.

You can either pay more to share or urge your friends and family to get their own accounts.

After testing account-sharing fees in Latin America last year, Netflix implemented its new policy in February in four regions, including Canada and Spain. Now, for many subscribers in the US, it’s the moment they have not been waiting for. Password-sharing fees are officially rolling out by the end of June.

The streaming service announced the move in a letter to shareholders Tuesday. Netflix subscribers who are sharing their passwords with people outside their physical households will have to pay for each subaccount. In countries where paid sharing has already rolled out, only subscribers with Standard or Premium plans can add extra members, which is capped at two per account. Users who live outside of a paying member’s household will be blocked from the platform and prompted to open their own accounts with the option to transfer their profiles. 

In Canada, where account-sharing fees have rolled out, Netflix says its paid subscriber base is “larger than prior to the launch of paid sharing” and is growing. The company believes it will achieve similar results in the US.

When Netflix outlined its plans for the password-sharing crackdown in February, the company required members to set a primary location for their accounts. Subscribers will still have the ability to watch videos on demand while traveling. Customers in Canada must pay CA$8 per month for each extra user. In Spain, the fee is 6 euros, for Portugal it’s 4 euros, and in New Zealand it’s NZ$8. Based on those amounts, it was expected that Netflix would charge US subscribers between $7 and $8 per subaccount. 

The streaming giant has drawn backlash for the policy, which comes after raising the prices for its most popular subscription tiers in 2022. Some customers threatened to cancel their accounts once it rolls out, and others expressed concerns about their college kids, parents and family members in the military being kicked off their subscriptions. 

In late February, Netflix slashed the prices of its subscriptions in over 100 markets, including Latin America, Asia, Africa, Europe and the Middle East. Some countries, like Venezuela, saw a reduction as high as 50%.  

Since experiencing a drop in subscriber numbers in the first quarter of 2022, Netflix has focused on new ways to monetize its service. In November, the company launched Basic with Ads, an ad-supported tier that costs $7 per month and offers one stream. Along with the new subscription plan, the company credits the release of TV shows like Wednesday, Outer Banks season 3 and Ginny & Georgia season 2 for helping bolster viewership and subscriber numbers for early 2023.