Netflix's 'Password Crackdown' Is Now In Effect In The U.S.

Netflix users were alerted to a potential password crackdown earlier this year.

Last winter, the streaming service caught a lot of heat from users when a list of stipulations regarding password sharing went viral. Netflix soon responded the list had been posted in error.

Forbes Australia revealed the list included a regulation for users to use a temporary login code while traveling. Users would also be required to log into the streaming service every 30 days, even if they are traveling and away from their primary WiFi network.

Netflix has also attempted to roll out strategies to minimize password sharing, including a "paid sharing option," which was slated to be released in late 2023. The streamer later explained their goal of allowing some flexibility for those users who share their account "more broadly" with family members who live farther away from the primary WiFi network.

"While our terms of use limit use of Netflix to a household," a statement from the streaming service began, "we recognize this is a change for members who share their account more broadly. So we've worked hard to build additional new features that improve the Netflix experience, including the ability for members to review which devices are using their account, and to transfer a profile to a new account," it continues. (via CBS, per The Blast)

The streamer introduced different ties for streaming in an effort to make up for massive subscriber loss in 2022; Netflix reportedly lost over 200,000 subscribers in the first half of 2022.

The aforementioned password stipulations that were posted by Netflix by mistake, contained strategies that were only valid internationally.

According to CNN, Netflix began emailing those users with accounts being used to share passwords. The email reportedly stresses, "Your Netflix account is for you and the people you live with-your household."

Netflix will continue to allow users to share their accounts but with a caveat. The outlet reports users can transfer users to a new account, or upgrade to a 7.99/mo. plan, which will allow the account holder to add users to the account.

The streaming service revealed earlier this year it "had seen a cancel reaction in each market when we announce[d] the news," but experienced a 'win' when Netflix reportedly saw "increased acquisition and revenue," and predicts any fall is expected in the third quarter of the year, rather than quarter two," according to a second CNN report.

The company also plans to cease its original DVD component in the fall.

In a tweet from DVD Netflix, the company announced, "On September 29th, 2023, we will send out the last red envelope. It has been a true pleasure and honor to deliver movie nights to our wonderful members for 25 years. Thank you for being a part of this incredible journey, including this final season of red envelopes."

A blog post cites the shrinking DVD market as a reason for its decision. The company's goal to provide its subscribers with the highest quality of service is becoming "increasingly difficult" to do so with its DVD component. (per CNN)