Netflix's crackdown on password sharing to begin by early 2023: Report

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It is fairly common to use your friend's Netflix password, something most college-goers do. In a bid to crackdown this practice, starting 2023, the streaming service is planning  to allow users to create sub-accounts to “monetize account sharing” more widely, says a report by The Verge.

Netflix added over 2.4 million subscribers in the third quarter of 2022. The company said that it has grown by 1,04,000 paid subscribers in the US and Canada over the last three months, up from 73,000 in the same period last year, and says it remains committed to the “bingeable release model.”

The crackdown on password sharing comes as a result of the subscriber loss which Netflix reported earlier this year, with the company’s subscriber count dipping by 1.3 million in the US and Canada and 1 million worldwide last quarter.

Moneycontrol couldn't independently verify the report.

Also Read: For Netflix, India, rest of Asia-Pacific drive subscriber growth in Q3

According to The Verge, Netflix tested a mechanism in Chile, Costa Rica, and Peru, which informed the streaming services provider when an account was being used outside the user's location.

Recently Netflix introduced a Profile Transfer tool that lets users easily transfer their personalized recommendations, viewing history, My List, saved games, and other settings to a new account after testing it in other countries. Last month, a report from Rest of World revealed frustration from users subject to the tests in Latin American countries, the Verge reported.

While the company's move to curb password sharing may make many non-paying Netflix watchers angry, the streaming service has also decided to launch a less expensive ad-supported tier next month.

Netflix Inc said it will introduce a streaming plan with advertising for roughly $7 per month in November, a move to attract new subscribers after the company lost customers in the first half of the year.

The $6.99 cost for the "Basic with Ads" plan is $3 less than Netflix's lowest-priced tier without commercials. The new option will roll out in 12 countries including the United States, Brazil, Germany, Japan and Korea, over 10 days.

Subscribers to the plan will see roughly four to five minutes of advertising per hour, Netflix said. Newly released films will have limited advertising to preserve the cinematic experience.

About 5-10 percent of Netflix's programming will not be available on the ad-supported alternative because of licensing restrictions, Netflix Chief Operating Officer Greg Peters told reporters.