Netflix’s password sharing policy is complicated & gets expensive fast

The inevitable end of Netflix password sharing seems imminent, according to Welp. It posted details on how the new system works and shared plans for its global rollout.

Customers in the United States won’t be impacted by the changes in the current rollout, but it does give us a slightly clearer idea of the ways in which the company will limit how customers share accounts. It’s a pretty confusing system, so here’s everything you need to know about how Netflix plans to limit account sharing.

How do you share your Netflix passwords?

Here’s the basic gist of how the policy is changing. When the new rules take effect, users will have to set a “primary location” where everyone living in that household and using that home’s network can use the same Netflix account. Users will need to pay more if they want to add profiles for people living outside of that home, which Netflix refers to as “extra members.”

Before we go on, it’s important to note that Netflix now has four different subscription plans: Basic with Ads ($6.99/month), Basic ($9.99/month), Standard ($15.49/month), and Premium ($19.99/month). You can share your account with each plan. A Standard subscription will support one additional subscription for someone who doesn’t live in your home, and a Premium subscription will let you add two extra members. Customers cannot add additional members to the Basic or Basic with Ads plans.

So if you want to add someone to your Netflix account who’s living in another place — for instance, a college student — you will have to subscribe to the Standard or Premium plans, and pay the extra member fee on top of the subscription.

Is Netflix going to be expensive with new password sharing rules?

It’s confusing, so we’ll just explain it in dollar terms. An additional person can access your Netflix account by paying $15.49 per monthly for the Standard plan. After that, the additional monthly charge for this individual will apply. At time of publication, the cost to add that extra user in Canada, where the new rules are rolling out, is $7.99 — roughly $6 in U.S. dollars. So it would cost about $21.49 per month, if the U.S. pricing tier is similar to Canada’s.

You can only add up to two users beyond your household as a Premium member. This would be $19.99/month for the base subscription and $12/month for two additional users. Total cost is $31.99/month.

What date will Netflix stop sharing passwords in the U.S.

Netflix is currently testing the system in Latin America. The company stated that it is ready to extend the rollout to Canada and New Zealand as well as Portugal and Spain on Wednesday. The U.S. has not yet set a date, although the Wall Street Journal reported that the streaming service will end account sharing in the U.S. by early 2023. This explainer will be updated as more information becomes available.

Can I use my Netflix account when traveling?

Netflix said Wednesday that subscribers will be able to “easily watch Netflix on their personal devices or log into a new TV, like at a hotel or holiday rental.” The company has not explained any further details on traveling with Netflix, so we don’t know whether there will be any conditions on how this feature works.

Netflix will offer a family plan that allows password sharing?

For now, it’s looking like Netflix will not have a formalized subscription marketed as a family plan. There also appears to be no way to use the same subscription in more than three different locations — the home network, plus two extra members.

Below is an overview of the different Netflix plans that the new system will provide:

Image by Netflix

Netflix Anti-Password Sharing?

Yes. Netflix clearly isn’t making the money it could if each member had their own subscriptions, especially with families such as mine. My adult siblings and I (who all live in different places) are leeching off our parents’ account, but soon, we won’t be able to use that account without paying a lot more. Each account will be restricted to three locations. So maybe I won’t be watching the next season of Single’s Inferno after all.