As the streaming service is preparing to charge users for sharing their logins, Netflix will formally outlaw password sharing in 2023.
Netflix password sharing will come to a stop in 2023. As a streaming service, Netflix has had a turbulent year. Netflix announced a significant decline in subscribers not long after the first fiscal quarter of 2022 came to an end. Since then, Netflix has experimented with a variety of various subscriber-growth strategies, one of which was the debut of a lower-tiered, ad-supported subscription tier in November of last year. Another suggestion made was to prohibit password sharing among users, which may now be becoming more popular.
In 2023, Netflix says it will stop password sharing, so the dreaded practice is finally about to end. According to the Wall Street Journal, Netflix intends to put in place procedures that will charge customers for sharing their credentials with devices that aren't inside their homes. This mechanism, which prompts users to enter a validation code on screen after signing in and expires after 15 minutes, is already being tested by Netflix in Latin American countries' versions of the service. The primary account holder has the option to add up to two users if users do not wish to go through this process while logging in.
It is still unknown exactly how they will accomplish this for Netflix's US-based service.
Will This Aid in Increasing Netflix Subscribers?
The motivation behind this adjustment at Netflix is still crystal clear—the streaming service is keen to try and increase members. Cracking down on password sharing is an effort by Netflix to attract new members rather than relying on the ones they already have who are urging friends and family to join their subscription with them. This is similar to their ad-supported subscription tier. They believe that by limiting the number of people outside the home who have regular access to Netflix accounts, individuals who were previously unsubscribed will be encouraged to do so.
However, since Netflix's ad-supported membership tier has reportedly been the least popular on the platform, the streaming service may not see the significant subscriber gain they are hoping for if the password sharing prohibition goes as well as Netflix's other adjustments have. The fact that popular shows like Arrested Development and House of Cards are not featured on the new pricing tier has also been brought up by users, which naturally irritates viewers who were searching for a less expensive option to the full Netflix experience.
Early reports from the Latin American testing on password sharing indicate that users have already voiced their complaints about how Netflix's anti-password sharing version is functioning. Netflix runs the danger of alienating even more of its subscription base if it keeps employing business practices that annoy users.
Instead, the elimination of password sharing can increase the number of users who subscribe to the ad-supported site. People who can no longer use someone else's or their parent's Netflix account may be more likely to create their own one for the $6.99 monthly fee. Some people might think it was wise of Netflix to launch the ad-supported plan initially in this regard. Customers who are saddened by the loss of a free Netflix experience now have a less expensive option for getting their fix of Wednesday, Sex Education, or The Sandman every day. However, it remains to be seen whether they will take advantage of this when Netflix launches its password-free self in 2023.
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