New Netflix Password Sharing Policy is Already a Confusing Mess in Test Markets

What is Netflix’s new password sharing policy?

The new password sharing policy at Netflix is simple: users who share passwords will be hit with an additional charge. A household is defined by the streaming service as the people who live with a subscriber. You can share your password with your roommates, but not your family member who lives across the country. If you want to share your account with people outside of your home, you can add additional users for a fee. According to Business Insider, the fee is just over $2 per person, while Rest of World says it's just over $2. Our request for clarification was not immediately responded to.

According to Rest of World, user reaction to the new policy has been mostly negative after the outlet spoke to a dozen subscribers. Some users have decided to cancel their subscription completely, while others have continued to share their passwords with no repercussions from the company. Rest of World was told that the policy is progressive, and that it was testing different versions in different countries.

Why is Netflix worried about password sharing?

It appears that there is financial trouble with the company. After announcing a loss of over 200,000 subscribers in the first quarter of 2022, the streaming company said it was considering adding ads to generate more revenue. The stocks of the company fell 30%. Users sharing passwords was blamed for the company's stock problems. The Tudum staff was downsized last month after only a few months of working for the company.

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It was too close to the sun. Once a monolith of the streaming age,Netflix is now succumbing to the consequences of its own indulgence. When it was monopolizing the streaming industry a few years ago, it probably wasn't too worried about competition from streaming services like Hulu. Passwords in the U.S. are still shared without fear of being charged a fine, despite the company's Terms of Use saying password sharing beyond households isn't allowed.