Sharing Is Caring, But Not When It Comes To Netflix Passwords: Get Ready To 'Pay Extra' Now

Netflix Inc. (NASDAQ:NFLX) users will now have to pay more if they intend to keep sharing their accounts with friends and family who don’t live with them.

What Happened: While announcing the earnings report on Thursday, Netflix said that it is planning to enforce new password-sharing rules “more broadly” towards the end of the first quarter of this year, reported The Verge. 

See Also: How To Buy Netflix (NFLX) Stock

The OTT streaming platform stated, “As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with.”

The company is expecting some “cancel reaction” but believes that the decision to launch new password-sharing rules will improve “overall revenue.” 

Why It’s Important: In April 2022, Netflix stated that approximately 30 million U.S. and Canadian households shared passwords for accessing content on the platform, while the global tally was 100 million. 

In 2017, Netflix’s corporate account tweeted in support of users’ password-sharing practice saying, “Love is sharing password.” However, the streaming giant in 2021 said that account holders would need to pay an extra fee if multiple users outside their homes are using it. 

Besides sharing its fourth-quarter earnings result, Netflix also announced that CEO Reed Hastings is stepping down after 25 years of leading the company. The company will now be spearheaded by Ted Sarandos and Greg Peters, who will serve as co-CEOs, the report noted. 

Read Next: If You Invested $100 In Netflix When It Debuted Streaming 16 Years Ago, Here’s How Much You’d Have Now