Tech
How Netflix’s Password-Sharing Crackdown Could Affect You
The platform said it lost subscribers for the first time ever.
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On April 19, Netflix announced that it had lost subscribers for the first time ever. The update has users wondering what this would mean for their subscription prices — and meme-ing their way through the confusion.
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Netflix cited competition, lifted restrictions on going out, and subscription-sharing as major causes behind their loss in subscribers. The company laid out a plan to deal with password-sharing and explore a new subscription option moving forward.
Password Sharing On Netflix Is (Almost) Over
One of the first steps in Netflix’s recovery, according to CNBC, is a major crackdown on subscribers sharing passwords. CNBC reports that this plan will likely roll out globally over the course of the next year.
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If you’re part of the reported 100 million households using a shared password, your college roommate’s mom (or whoever owns the account) will likely be notified in the coming months.
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What Happens If I Share My Password Now?
Rather than the account being frozen or suspended, account holders will likely be charged an extra fee for each person who uses the account from a different address. In previous tests, each additional user cost between $2 and $3, per CNBC.
Commercials On Netflix
If you can’t fathom paying for your own Netflix account — hence the password-sharing — a cheaper subscription plan that would include commercials may be coming in the future, Variety reported. (Think: Hulu’s lower-cost subscription.)
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Currently, a price hike doesn’t seem likely — rates already rose to $10/month for a basic plan (one stream at a time) and $15.49/month for standard (two streams) in January. Still, Netflix could become a bit more expensive for password-sharers sometime soon.