Netflix Password Sharing Fees: What You Need to Know (2024)

The implementation of Netflix password sharing fees last May has paid off for the streaming giant in a big way with major increases in both subscriptions and revenues in its most recent quarter.

The company added 13.1 million subscribers during the fourth quarter — up from 7.7 million in the same year-ago period — largely on the back of its efforts to “monetize sharing.” In addition, Netflix earnings for the quarter soared 12.5% to $8.8 billion.

“Our healthy top-line growth reflects the benefits of paid sharing, our recent price changes and the strength of our underlying business driven by a strong slate,” the company said in its January 23 earnings announcement.

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But the company also signaled that another round of price increases is on the way and said that it plans to phase out its Basic plan for new and rejoining subscribers.

“As we invest in and improve Netflix, we’ll occasionally ask our members to pay a little extra to reflect these improvements, which in turn helps drive the positive flywheel of additional investment to further improve and grow our service,” it said.

Last October, Netflix hiked prices for the second time in less than two years. The current monthly pricing for the Netflix Standard plan with ads is $6.99. Without ads, the Standard plan will run you $15.49 a month and the Premium plan will cost $22.99.

Netflix password sharing changes

In the January announcement, Netflix also said that it believes it has successfully addressed account sharing, which has created a bigger subscriber base and ensured “that when people enjoy Netflix they pay for the service too.”

Last May, Netflix officially announced its plan to reduce unauthorized password sharing in the United States among customers who share logins with friends and family outside their household. Netflix announced on its corporate blog that “Your Netflix account is for you and the people you live with — your household.”

The company is cracking down on customers who share their accounts with people outside a single geographic household, introducing an $8 monthly charge in a long-threatened bid to retain customers and stanch a slowdown in subscription growth. Netflix uses location tracking to ensure subscribed users are logged in at a single home subscriber base, which is sure to test users already sensitive to growing threats to their online privacy.

Current customers can buy an extra membership to their main subscription for an additional $7.99 per month.

Since the end of June, Netflix has blocked devices that attempt to access a Netflix account without paying the proper fees, according to TechRadar. Subscribers in a compliant household can keep using the service on the road, like on laptops or hotel TVs, without paying additional fees.

Netflix Password Sharing Fees: What You Need to Know (2)

(Image credit: Netflix)

Netflix warned ISP partners of backlash

The Financial Times previously reported that Netflix had alerted internet provider partners in the UK that they should expect angry calls and support questions about the sharing price hike and location tracking features.

This move suggested that despite Netflix's best efforts, the company predicted a large number of subscribers would only detect the change when Netflix demanded an extra $8 for sharing the account outside their new "home" location.

Time to shop around?

Netflix customers have a few options at hand for dealing with this new account sharing reality. They can pay the extra member fee for $7.99 or get a new account for as little as $6.99.

Or they can shop around to see what streaming competitors are offering. We've broken down the latest deals below:

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Netflix Password Sharing Fees: What You Need to Know (2024)

FAQs

Netflix Password Sharing Fees: What You Need to Know? ›

Netflix customers have a few options at hand for dealing with this new account sharing reality. They can pay the extra member fee for $7.99 or get a new account for as little as $6.99.

How does Netflix know you are sharing a password? ›

Netflix detects password sharing through analysis of IP addresses, device IDs, and usage patterns, allowing them to identify instances of shared accounts and address them accordingly.

How will Netflix charge for password sharing? ›

Sharing a password with a user outside the household will cost the owner of the account $8 per extra person, on top of what they're already paying for their Netflix plan. If you're on the standard Netflix plan, you can add one person outside your household. Premium users can add up to two.

How does Netflix know who is in your household? ›

We use information such as IP addresses, device IDs, and account activity to determine whether a device signed into your account is part of your Netflix Household. We do not collect GPS data to try to determine the precise physical location of your devices.

Can I share my Netflix account with family in a different home? ›

A Netflix account is meant to be shared by people who live together in one household. People who are not in your household will need to use their own account to watch Netflix. Learn more about sharing Netflix. Account owners can buy an extra member slot and invite people outside their household to use Netflix.

How does Netflix know I'm not watching? ›

By tracking information through IP addresses, device IDs, and account activity, the streaming platform can work out which viewers are watching accounts from different locations frequently, and can choose to step in if they think an account is being shared from a non-household member.

Can I use my Netflix account at my vacation home? ›

A Netflix account is for use by one household. Everyone living in that household can use Netflix wherever they are — at home, on the go, on holiday — and take advantage of new features like Transfer Profile and Manage Access and Devices.

What happens if someone outside your household uses your Netflix account? ›

A Netflix account is meant to be shared by people living together in one household. People who are not in your household will need to sign up for their own account to watch; or in many countries you can buy an extra member slot to add an extra member to your account.

How many TVs can you have on Netflix household? ›

With a Household account, users can stream content on one to four devices at once. How many accounts can be added to Netflix Household option? Five members can be added to the Netflix Household including the owner.

How to bypass Netflix household error on TV? ›

Verify that your TV is part of your Netflix Household
  1. When prompted on your TV, select Update Netflix Household.
  2. Select Troubleshoot This TV.
  3. Open the camera on your mobile device and point it at the TV screen to scan the QR code, then tap Next.
  4. Make sure your mobile device is connected to your home Wi-Fi.

How much does it cost to add a second location to Netflix? ›

Netflix uses location tracking to ensure subscribed users are logged in at a single home subscriber base, which is sure to test users already sensitive to growing threats to their online privacy. Current customers can buy an extra membership to their main subscription for an additional $7.99 per month.

How to overcome Netflix household? ›

Ways to Get Around Netflix Household
  1. Use a vacation access code.
  2. Sign in to Netflix on the account holder's internet.
  3. Use NordVPN's Meshnet.
  4. Avoid using Netflix on TVs or streaming devices.
  5. Block certain Netflix domains on your device.
Jul 29, 2024

How much is a second home fee for Netflix? ›

"Beginning August 22, 2022, if your Netflix account is being used on a TV outside of your home, you will need to pay an extra $2.99 per month for each extra home.

How will Netflix eliminate password sharing? ›

How will Netflix stop you from sharing your password? Going forward, Netflix will ask anyone using an account on a streaming device that isn't associated with the account owner's household to enter a four-digit verification code that will be sent to the primary email address or phone number associated with the account.

Can you share a Netflix account in a different location? ›

A Netflix account is meant to be shared by people living together in one household. People who are not in your household will need to sign up for their own account to watch; or in many countries you can buy an extra member slot to add an extra member to your account.

How do I get around the Netflix household? ›

How To Get Around the Netflix Password-Sharing Rules
  1. Buy Additional User Accounts. ...
  2. Use NordVPN App. ...
  3. Share Access Codes and Verification Emails. ...
  4. Log In From the Netflix Account Owner's WiFi. ...
  5. Avoid Smart TVs and Streaming Devices.
Jun 13, 2024

What is the penalty for sharing Netflix accounts? ›

There will be no penalty for primary account members who are caught sharing their credentials. The company will just stop the people they are sharing with from being able to stream.

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