Netflix password sharing coming to an end later this year, says report

Will Amazon Prime Video and Disney Plus reap the benefits?

Netflix shady man on computer
(Image credit: NurPhoto / Getty Images)

Netflix password sharing could soon be a thing of the past. The commonly used tactic of giving friends and family access to your Netflix account in an attempt to save money could now result in a surcharge from later this year.

As reported by the New York Times (opens in new tab), the new password sharing clampdown has already begun with a trial period in several countries – Chile, Costa Rica and Peru – and it potentially might look to roll out globally sometime during the last three months of 2022. If that's correct, this would mean Netflix subscribers should prepare to reel in their accounts from October at the earliest. 

This target window was spotted in a memo obtained by the New York Times, the same one that suggested Netflix's cheaper ad-based tier will be arriving sooner than many originally expected. With the streaming platform already losing 200,000 subscribers during the first quarter of 2022, it now looks to recuperate that revenue through different avenues like these. 

T3 has reached out to Netflix for comment.

At this moment in time, Netflix has close to 222 million paying subscribers, however, the company believes that 45% (almost 100 million) share their passwords with others. Any Netflix subscribers that continue to do this could face an extra surcharge of approximately $2.99 / £2.99 if their accounts are found within under households. 

It's also looking to be another hit for households with the cost of living rising exponentially over the past few months, something that's expected to continue going forward. In the UK, 1.5 million people left subscription platforms such as Amazon Prime Video, Disney Plus, Apple TV Plus and Netflix during the first three months of the year (via market research firm Kantar (opens in new tab)

As Netflix continues to cancel shows, such as Another Life, Space Force and Raising Dion, it's understandable that consumers may look to end their subscriptions out of frustration. Additionally, as Netflix looks to prioritise its biggest shows with extraordinarily large budgets - Stranger Things 4 has reportedly been given a $30 million budget per episode – is this the time for its competitors to strike? 

Amazon Prime Video and Disney Plus currently don't utilise a charging method for sharing passwords (though don't encourage the method). Could the streamers see an influx of new subscribers as a result? Disney Plus also has the Obi-Wan Kenobi series premiering in May, while Amazon's The Lord of the Rings: The Rings of Power is set to debut in September meaning there are plenty of choices out there.  

Matthew is the Staff Writer for T3, covering news and keeping up with everything games, entertainment, and all manner of tech. You can find his work across numerous sites across the web, including TechRadar, IGN, Tom's Guide, Fandom, NME, and more. In his spare time, Matthew is an avid cinema-goer, keen runner and average golfer (at best). You can follow him @MattForde64