Netflix Password Sharing Crackdown Starts Early 2023: Are There Penalties for Violators?

Netflix Password sharing crackdown is about to start early next year, or in 2023, to be more exact, a new report reveals.

The top brass of the giant streamer has previously announced that they are looking to address the password-sharing issue on the service.

However, it is unclear when the crackdown will kick off -- until now.

Netflix Password Sharing Crackdown

As per the latest report by The Wall Street Journal, Netflix researchers have reportedly seen password sharing as a problem as early as 2019. It turns out that it is heavily affecting the subscriptions to the streaming service.

However, the news outlet notes in its story that the giant streamer put a hold on addressing password sharing during that time. The sources of The Wall Street Journal say that Netflix felt that addressing it might alienate some users.

But this time, the giant streamer is grappling with slower subscriber growth these days. And one of the solutions of the big bosses of Netflix to overcome the slowdown is to start cracking down on password sharing among its users.

To be more precise, the co-CEO of the streamer, Reed Hastings, previously announced that they are working to address the password-sharing issue after putting it on hold for quite a while.

Another move that Netflix took to boost its subscribers is by introducing a cheaper tier. The giant service has started rolling out its Basic with Ads plan. It offers a more affordable subscription fee while still accessing most of its movies and shows.

Netflix is Addressing Account Sharing in Early 2023

And now, the Wall Street Journal says that the crackdown on sharing accounts will kick off beginning early next year in the United States.

According to a news story by Mac Rumors, the streaming service, which houses hits like Stranger Things and Squid Game, has started testing out measures to prevent password sharing this year.

It looks like that in early 2023, these preventive measures will start rolling out officially to Netflix users, potentially stopping them from sharing their accounts.

Are There Penalties for Password Sharing?

A report from Nerdist says that the password-sharing crackdown will require accounts outside of the household of the paying user to also pay to continue using the service.

Netflix has started testing the policy in some Latin American countries, requiring users outside of households to pay an add-on fee of roughly $2.99 per month.

Given that, the crackdown will not impose any penalties on password-sharing users. Instead, the streamer will only require you to pay extra.