When Love Was Sharing a Password: Netflix Crack's Down on Password Sharing

For years, people have been sharing their Netflix passwords, giving each other the gift of streaming. Most recently, Netflix has decided to end password sharing in 2023 and the internet went up in flames—as expected.

Source: Netflix


Here are the facts:

Due to its financial struggles against other competitors such as Disney+ and HBO Max, Netflix lost nearly One Million subscribers between April and July of 2022. The solution was to raise its prices, but that only made more people cancel their subscriptions.

In the past, the casual nature of sharing passwords has been a part of the conversation. It was deemed illegal, breaching the copyright law. However, there was never any legal action taken. 

Recently, Netflix released their shareholder’s letter which revealed that password sharing will end by the close of the year’s first quarter. The letter indicates that there will be a charge for password sharing. The exact fee has not been shared yet.

Many are skeptical and furious about this transaction. Most question how Netflix will know if they share their account.

The streaming service collects data about you; i.e Netflix knows what you watch, when you watch, and the location of your homes and device IDs. All this information is determined by who is watching and whether or not they are in your immediate household or not.

As described in their shareholder’s letter, subscribers will still be able to use their divices outside the house once the rule is enforced.

However, when Netflix detects someone outside the household is sharing the password, it will block the device. In addition, at the end of every month, subscribers will have to log in on their home Wi-Fi network or their account will be blocked. 


Social media weighs in:

Amidst the announcement of Netflix’s crackdown, social media—especially Twitter—has responded to this new implication. Many went on the platform to voice their opinions and banter about Netflix canceling password sharing.

After much criticism, Netflix revealed that their strict new password-sharing rules were posted in error. They have since removed the rule that account holders must verify their home devices every month from their website. It’s safe to say social media is one more step from forcing Netflix to retract thsi new rule.

What do you think about Netflix cracking down on password sharing? Leave a comment below.