Netflix Knows You're Sharing Accounts & They're Doing Something About It

Those who currently share a Netflix account with a friend, family member in a separate household or even an ex, it might be time to branch out on your own.

The streaming giant is starting to crack down on account sharing — and it'll cost you, Netflix execs said on its quarterly earning call on Tuesday (October 18), according to the Daily Mail. How? By implementing fees for users looking to set up additional profiles or accounts. Here's how it'll work:

If you're currently using someone else's Netflix, you'll be given the option to transfer your profile to a new subscription. Account holders can also establish a "subaccount," which brings an added fee to their subscription. "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 borrowers to transfer their Netflix profile into their own account, and for sharers to manage their devices more easily and to create subaccounts ('extra member'), if they want to pay for family or friends," Netflix wrote in a letter to shareholders, obtained by MarketWatch.

The issue, however, is enforcing this new policy. While Netflix hasn't specified how password-sharing restrictions will be enforced, a test done in South America verified the account holder through their IP address. They chose this route instead of geographical location due to the on-the-go nature of accessing Netflix on your phone or laptop. No more details, beyond the letter to shareholders, will be released at this time.

Netflix tested a similar approach in South America earlier this year by charging $3 to $4 per additional household using a single Netflix account. The idea was "sunset," however, after the streaming service is on the up and up after losing millions of subscribers, a spokesperson said. Stocks remain more than 50% down since the start of the year despite an increase of 2.4 million subscribers and a 13% increase in shares.

Look out for these changes rolling out in early 2023.