Netflix password sharing will cost $7.99 a month per extra viewer

Netflix has decided to end password sharing after months of testing and warning in certain countries. In a first step toward the streamer’s announced plans to implement “paid sharing,” Netflix is politely informing subscribers that, to paraphrase Marlo Stanfield from The WireThe cost of content has increased.

“A Netflix account is for use by one household,” reads a blog post Netflix published on Tuesday, regarding its new policy. The description doesn’t apply to those who are not included in the household (siblings or friends). who don’t live with the primary subscriber to a Netflix account) have two options if they want to continue watching Netflix: Transfer their account to a new paid membership, or have the Netflix subscriber add an “extra member” to their extended “household” for an additional fee of $7.99 per month.

In the event that you fail to follow this process, it will cause a system crash which will kill everyone who is connected to Matrix. Combined with the elimination of Zion and the eventual extinction of all humankind, the failure to do so will be the final blow to humanity. (Just kidding. That’s a quote from The Matrix ReloadedHere, we like to enjoy ourselves.

Image: Netfix

A support page linked at the bottom of the email describes “extra members” as users who will have their own unique passwords and profiles, paid for by the primary subscriber. These accounts can only be used in one country, they are limited to viewing and downloading content using a single device, and the extra members cannot create their own profiles. These restrictions have been designed in a way that is clear to discourage sharing of accounts and encourage everyone to sign up for their own Netflix account. (As of this writing, a Netflix account is currently $9.99 a month for the “basic” tier, with additional tiers going up to $19.99 per month. No matter what the account’s tier is, additional users cost $7.99.

Netflix intends to enforce their shared-account policies by identifying which IP address is being used on the device by the account owner. To change that location, users can confirm or update their household via the Netflix app, and respond to a verification link sent to the account holder’s email address or phone number.

Netflix knows that the decision it has made will be met with backlash. According to a Variety report, Netflix co-CEO Greg Peters stated during a fourth-quarter 2002 earnings interview that the company anticipates a “cancel reaction” among Netflix’s user base in response to this change. “This will not be a universally popular move,” Peters said, comparing reaction to paid sharing to the reaction to past subscription price increases.

Ultimately, the question of whether potential customers will choose the “extra members” option on a family accounts or pay for their own account entirely depends on whether a given customers values having a Netflix subscription in the first place.