Netflix is going to start charging users for sharing their password (Getty Images)
Netflix is set to disallow its users from sharing their passwords with family and friends early next year.
The streaming giant is looking for ways to cut password sharing to stem the tide of disappearing subscribers as Covid-19 lockdowns subsided.
A new validation system will be put in place that detects when users log in from outside of the primary account holder’s home. The system will require viewers to enter a validation code within 15 minutes.
Netflix will reportedly allow primary account holders to add up to two additional users who won’t be served a validation code.
And those who do share their passwords will apparently be asked to pay a little extra. In some countries, this has been a $3 (£2.50) add-on, although it’s not yet clear if this will be rolled out worldwide.
Netflix could simply force people to sign up to a second account if it detects multiple logins outside the primary address.
According to the company, over 100 million viewers are tuning in using passwords they’ve borrowed from friends and family.
In October, bosses at the company told investors: ‘We’ve landed on a thoughtful approach to monetize account sharing and we’ll begin rolling this out more broadly starting in early 2023.’
‘After listening to consumer feedback, we are going to offer the ability for sharers to manage their devices more easily and to create sub-accounts, if they want to pay for family or friends.’
Netflix will crack down on password sharing in 2023 (Credit: Getty)
What makes things more complicated, at least in the UK, is the recent ruling from the Intellectual Property Office (IPO) that sharing a Netflix password is actually illegal.
In guidance published last week, the IPO said: ‘Pasting internet images into your social media without permission, or accessing films, tv series or live sports events through Kodi boxes, hacked Fire Sticks or apps without paying a subscription is an infringement of copyright and you may be committing a crime.’
The guidance had earlier included a reference to password sharing, but the agency quickly removed it.
However, an IPO spokesperson confirmed the law and its guidance remained unchanged.
‘There are a range of provisions in criminal and civil law which may be applicable in the case of password sharing where the intent is to allow a user to access copyright protected works without payment.
‘These provisions may include breach of contractual terms, fraud or secondary copyright infringement depending on the circumstances.’
But it’s up to the streaming service provider to take action through the courts if required, the IPO said.
It remains to be seen what measures Netflix will take when it comes to enforcing its new rules.
The company has changed its tune dramatically since joking on Twitter that ‘Love is sharing a password’ as it was quickly expanding in the UK in 2017.
Disney+ does not allow users to share their password with other households, while Amazon Prime customers can share their account with one other person.
MORE : Sharing your Netflix account is officially now a criminal offence
A new validation system will be put in place early next year.
