Netflix reveals it will block users who share passwords and don't pay in massive crackdown
| Last updated
Featured Image Credit: Credit: Ink Drop / Alamy. Daniel Krasoń / Alamy.
Netflix has announced a massive crackdown on password sharing around the world in an effort to boost subscriptions.
The streaming service said it would expand its efforts to make everyone pay in the US and 100 other countries.
It sent emails to inform its users explaining that they could no longer be able to share passwords outside their households unless the person pays.
If you're family but you're not living under the same room, yep, you'll have to start paying, people.
"We use information such as IP addresses, device IDs, and account activity to determine whether a device signed into your account is part of your Netflix Household," the company wrote in a statement.
"We do not collect GPS data to try to determine the precise physical location of your devices.
"If a Netflix Household hasn’t been set, we will automatically set one for you based on IP address, device IDs, and account activity."
Paying customers can add a member outside of their household for an additional charge.
In the US, the fee will cost $7.99 per month, adding to the standard plan of $15.49 per month.
Customers will be able to transfer profiles to new memberships, to keep their history and recommendations.
Earlier this year, the streaming giant revealed there are 'over 100 million sharing accounts' and the reason for the crackdown was that password sharing could be directly 'impacting our ability to invest in great new TV and films.'
It's no secret Netflix has been struggling in recent years.
Last year, after the company cut ties with Russia following the country's invasion of Ukraine, Netflix lost 700,000 subscribers.
And while the streaming giant also gained another 500,000 subscribers elsewhere, it ultimately lost 200,000 customers in the first quarter, it's most significant loss in a decade.
However, things went from bad to worse, as in the second half of the year, Netflix lost an additional 970,000 subscribers, as per TechCrunch.
As a result, Netflix responded to its dwindling customers by enforcing stricter password-sharing regulations to ensure their subscriptions go back up.
During an interview with Variety, Netflix Co-CEO Greg Peters acknowledged that while the password-sharing crackdown would not be a 'universally popular move' it would help boost long-term membership growth.
He added there might be 'a bit of cancel reaction to that' but described it as a 'gentle nudge' for members to pay for users outside their own household.