Netflix Password Sharing Crackdown Explained
In May of 2023, Netflix, the streaming giant that boasted 232.5 million paid subscribers worldwide in the first quarter of the year, rolled out new Netflix account sharing guidelines. They stated their intent to crack down on password sharing, dictating that a Netflix account was meant for a single physical household.
But the new Netflix guidelines have been confusing for many users. Who can be on an account? Who will need to get a new account? Can users watch while traveling? In this article, we'll explain the new Netflix password sharing guidelines. We'll also indicate what changes the new membership terms might bring for users.
What are the new Netflix password sharing guidelines?
For those who use their Netflix accounts with others in their physical household, these new guidelines don't change much - at least until you take a vacation or travel for work. For those who share accounts with friends and family across the country, however, the Netflix guidelines impact your account sharing experience as it currently stands.
Netflix's new password sharing guidelines focuses on limiting Netflix accounts to individual households. Therefore, this means users outside your home shouldn't be sharing an account.
Users who are in one physical location - referred to as a Netflix Household - can have one account with up to five individual profiles. Members on the higher tier plans in most countries - including Canada, New Zealand, Portugal, Spain, and the USA - can add an extra member account for up to two people they don’t live with. However, these sub-accounts are only permitted to have one profile.
Netflix offers a profile transfer feature for users who must purchase their own accounts. It lets them transfer their show recommendations, watch history, and more to their own account.
Netflix will also block access to devices that attempt to log in if they haven't signed into the home WiFi at least once every 31 days. Accessing Netflix via the home WiFi once a month makes your devices "trusted devices." It allows them to continue to stream Netflix shows without interruption.
How does Netflix know who's using my account?
As a form of IPTV, Netflix uses IP addresses, device IDs, and account activity to determine whether a device signed into your account is part of your Netflix Household.
They emphasize that they do not collect GPS data to try and determine the precise physical location of your devices. However, if you aren't using a virtual private network or proxy server, your IP address does provide a general idea of your location. It's possible this could be used by the streaming service to crack down on Netflix password sharing and determine which devices are in a Netflix Household.
There's also the question of how Netflix will use IP addresses to limit Netflix sharing when many users have Internet service providers that give them dynamic IP addresses, meaning their IP address changes and does not remain the same forever. This is likely why Netflix is also using device IDs and account activity to determine whether or not a user is watching from an account legitimately.
Some members theorized that a VPN would allow users to watch Netflix while sharing an account. VPNs allow users to change their IP address for privacy reasons, but they also come in handy in other situations, such as when trying to access the Netflix streaming libraries of other countries. However, because Netflix is not relying solely on location or IP address, this likely isn't a solution.
Who is in my Netflix Household?
According to Netflix, a Netflix Household is a collection of devices connected to the Internet at the primary location where you watch Netflix. In other words, your Netflix Household is made up of the people who live under your roof and use your Internet connection with their devices.
This, then, excludes family or close friends who don't physically reside with you. Netflix says those people need to sign up for their own accounts or be added to yours through a paid plan. This includes college students, individuals who travel extensively for work, and military personnel who are deployed for long periods.
All account holders who watch Netflix on a TV device need to set a Netflix Household in their account settings. By establishing your primary location, you establish who can and can't use your Netflix account as an authorized user.
If you don't set a Netflix Household, Netflix will automatically set one for you to prevent password sharing. If you're the owner of your account, make sure you set your Netflix Household so that you don't experience disruptions in your account access. However, note that if you don't use a TV to watch Netflix, you don't need to set a Netflix Household as of now. Viewers who only watch from their laptops, tablets, or phones won't have to take any additional steps to continue viewing their favorite shows and movies.
What's the penalty for sharing Netflix accounts?
Right now, there is no explicit penalty for sharing Netflix accounts; Netflix doesn't flag your account or ban you from their platform. However, users sharing accounts who do not live in the same household will not be able to access their accounts. The penalty for sharing Netflix accounts is loss of access.
How much does sharing a Netflix account cost?
Sharing a Netflix account costs $7.99 per additional member per month. However, only certain plan tiers have the option to add additional members to your account. Therefore, if you currently have a Basic plan and want to share your Netflix password with a friend who lives in a different location, you'll have to upgrade your plan to a more expensive option first. Then, you can add on the friend for a $7.99 monthly fee.
Netflix currently has three plans for all users to choose from: Basic, Standard, and Premium. Users in certain countries also have access to Standard with ads, which is the lowest tier. Each tier offers different benefits, as broken down in the chart below.
| Netflix Plan | Pricing | Features |
|---|---|---|
| Standard with ads | $6.99 per month | - Ad-supported - Most TV shows and movies are available - Watch on 2 devices at a time - Watch in Full HD |
| Basic | $9.99 per month | - No ads - All TV shows, movies, and mobile games are available - Watch on 1 device at a time - Watch in HD - Download on 1 device at a time |
| Standard | $15.49 per month; extra member slot +$7.99 | - No ads - All TV shows, movies, and mobile games are available - Watch on 2 devices at a time - Watch in Full HD - Download on 2 devices at a time - Option to add 1 additional member |
| Premium includes option to add extra members |
$19.99 per month; extra member slots +$7.99 | - No ads - All TV shows, movies, and mobile games are available - Watch on 4 devices at a time - Watch in Ultra HD - Download on 6 devices at a time - Option to add 2 additional members - Spatial audio |
Can I still watch Netflix when I travel?
Netflix says that, yes, "members can still easily watch Netflix on their personal devices or log into a new TV, like at a hotel or holiday rental." The Netflix password sharing guidelines shouldn't affect travel, according to Netflix. Users will receive a temporary code when signing in. This grants them access to their account for seven days in a row.
It's unclear what happens in the case that a user is on an extended vacations. It seems likely users will just need to log in again with a different temporary code. Users can also watch Netflix on their mobile phones, tablets, or laptops while traveling with no issues.
If I have multiple homes, do I need multiple accounts?
For those who have multiple homes or travel to the same location frequently, Netflix says you can keep one account. They provide instructions for users to connect their Netflix account to both places. Users need to connect to the Internet and open the Netflix app on their mobile devices once a month from their primary location. Then, upon arriving at their second location, they should follow the same steps to continue watching without interruption.
However, in March 2022, Netflix launched an "Add a Home" feature for viewers in select Latin American countries, including Chile, Costa Rica, and Peru. They maintained that users should have one home per account, but could purchase additional homes to their plan for an additional fee. members on the Basic plan could add one extra home, Standard plan members could add two, and Premium plan members could add three.
For viewers in the United States of America or other countries where the new Netflix password sharing update was recently rolled out, it's unclear if users need to purchase additional accounts or profiles if they have multiple homes that they don't travel to often. It's also possible that this protocol will eventually reach North American markets, though Netflix has not announced that yet.