Netflix reveals new restrictions on sharing passwords

For quite some time now, Netflix has been planning to crack down on password sharing, and it looks like they’re finally taking the first steps to make good on that promise (or threat if you prefer). In an announcement released on February 8, Netflix has announced that they are rolling out their password limitations in certain territories.

While the new rules won’t go into effect in the United States initially, they will start taking effect in Canada, New Zealand, Portugal, and Spain. Assuming that Netflix sees the changes, they are hoping for in its customer base, it’s likely that these restrictions will spread to other countries later in the year.

But what exactly are the new restrictions?

New password restrictions

According to the announcement, Netflix will start requiring users to set a primary location for their account, meaning that people living in that primary location can access the account. For people not living in the primary location who have been using the account (the password sharers), Netflix is offering two options.

They are offering an option to transfer a profile, so that people can start paying for their own account while still keeping their recommendations, watch history, and other personalized elements. Or the person paying for the account will have the option to add extra members to their account for up to two people who don’t live in the primary location.

The prices quoted in the announcement for the extra members are CAD$7.99 a month in Canada, NZD$7.99 a month in New Zealand and Euro 3.99 a month in Portugal. The announcement does say that members of the primary household will still be able to watch things on their Netflix account while traveling at a hotel or vacation home.

Though it doesn’t go into any detail on how it plans to make that possible. (An earlier report suggested that the device would need to connect to your primary Wi-Fi within a certain amount of time in order for it to be able to access your Netflix account, though that’s not been stated by the company itself.)

What does this mean for the future of Netflix?

Rumors about cracking down on password sharing have been circulating for some time now and have been met with backlash from Netflix users. It’s easy to think of scenarios that these new rules don’t adequately address.

Will a two-month business trip still be viewed as travel, or will that person have to change their primary location to wherever they’re staying for the time being? Does this mean a family with a student in college will now need to pay an additional fee for that student to be able to watch Netflix while at school?

It will be some time before we can see if Netflix determines if these new restrictions are a success or a failure, and if they plan on rolling them out into additional territories.

How do you feel about the Netflix password sharing announcement? Let us know in the comments below!