Netflix password-sharing crackdown details released

Netflix has said it plans to launch the paid-sharing system 'more broadly' later in Q1

Streaming giant Netflix has provided an update on its efforts to restrict members from widely sharing passwords outside their households.

The company said four countries — Canada, New Zealand, Portugal and Spain — became subject to its new policy on password sharing on Wednesday. It had previously been "exploring different approaches" in Latin America, according to the news release

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Netflix logo (Gabby Jones/Bloomberg via Getty Images / Getty Images)

An account is "meant to be shared in one household (people who live in the same location with the account owner)," the "Sharing your Netflix account" pages on Netflix’s Help Center for those four countries said. 

Netflix said it will assist members in the four countries in setting a primary location. That is the "main place where you watch Netflix, and is associated with your home Wi-Fi network and the devices connected to it," according to the Canada page for setting one. 

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Those who aren’t part of what Netflix considers a household will have to get their own account. Or, in the countries where Netflix’s paid-sharing system has rolled out, the owner of the Standard or Premium account that outsiders have been using can add them as an "extra member," according to the Help Center page for New Zealand. 

The cost of adding an "extra member" to an account is "less than the price of [Netflix’s] Basic plan," the webpages for Canada, New Zealand, Portugal and Spain added. That additional monthly fee will be charged to the person whose account the "extra member" gets added to.

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In this photo iIllustration, the Netflix logo is seen on the screen of an iPhone in front of a computer screen showing a Netflix logo. (Chesnot/Getty Images / Getty Images)

Netflix said in the news release members in those countries can have up to two "extra members" on their accounts, depending on which plan they have. Here’s how much the company said the "extra member" fee would be per person:

-Canada: CAD$7.99

-New Zealand: NZD$7.99

-Portugal: Euro 3.99

-Spain: Euro 5.99

Managing "account access and devices" through a designated page and transferring profiles is available, Netflix also said Wednesday. 

"Members can still easily watch Netflix on their personal devices or log into a new TV, like at a hotel or holiday rental," the company added.

The "Sharing your Netflix account" pages for Costa Rica, Chile and Peru look to have been updated as well.

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Last week, the pages for those three countries said associating a device with a primary location would involve "connect[ing]" to the Wi-Fi at your primary location, open[ing] the Netflix app or website and watch[ing] something at least once every 31 days." That information no longer appears.

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A man presses the Netflix button on a TV remote control.  (Phil Barker/Future Publishing via Getty Images / Getty Images)

NETFLIX PLANS TO STOP USERS FROM SHARING PASSWORDS BY END OF MARCH

The streaming giant’s policy on password sharing will launch "more broadly in the coming months," Netflix said in the Wednesday release. 

"Near term engagement," Netflix said in a Jan. 19 shareholder letter, could see some negative impacts while the company expands its paid-sharing system and some users choose to stop instead of creating their own accounts or becoming an "extra member." The company said it expects engagement to grow "over time," however.

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Netflix's total subscriber count came in at 230.75 million at the end of 2022’s fourth quarter, compared to 221.84 million reported in the same period in 2021.