Netflix lays down the law, cracks down on password sharing
Marvin Samuel Tolentino Pineda/iStock Editorial via Getty Images

Netflix (NASDAQ:NFLX) has given details about its long-awaited efforts to crack down on its subscribers sharing their account passwords with people outside their home, and the streaming TV giant is not messing around with the matter.
Netflix (NFLX) laid out the new policies on its online help center, with the biggest rule change being that only members of a single household will be able to use a single Netflix (NFLX) account. No longer will a Netflix (NFLX) subscriber be able to share their account with, say, grandma who lives in another state.
In order to ensure that its subscribers adhere to its new rules, Netflix (NFLX) is doing what it can to localize where its members are accessing the streaming service. Members will need to set a primary location through the Netflix (NFLX) home screen on a WiFi connected TV. Once that is done, all other devices that are signed into a member's account on that Wi-Fi network will then be able to use that Netflix (NFLX) account.
In order to continue using that account, any member profiles associated with it will need to access Netflix (NFLX) on their devices at least once every 31 days.
However, Netflix (NFLX) isn't making it easy for its members to use watch programs from outside their homes. According to Netflix (NFLX), if some is, say, on a vacation and wants to watch something like the hit series "Wednesday", they may need to basically ask for permission from the main account holder to verify their device. The main account holder will then get a code that they can give to the outside user so that they can then access Netflix (NFLX) for seven days.
Netflix (NFLX) has made no secret of its intentions to crack down on users who are technically not paying for its service by using other members' passwords. The company has said that it estimates as many as 100M users around the world are watching Netflix (NFLX) content by using the passwords of others and not paying for the service. Netflix (NFLX) has also been rumored to be considering tacking on additional fees for members who want to share their accounts with others outside their homes.
Reaction to Netflix's (NFLX) new guidelines was mildly negative on Wednesday, as the company's shares gave up 1% in early trading.
Earlier this week, Nielsen released data showing that Netflix (NFLX) programs dominated the top streaming programs during 2022.