After months of testing out password-sharing crackdowns in other regions, Netflix's policy change is now coming to the U.S., the company said today. The move officially clarifies that Netflix accounts are to be shared within a person's household and will require subscribers to pay an additional $8 monthly fee to add a user in another location. Netflix revealed that it planned to bring the program to the U.S. in its most recent financial letter to shareholders. Before coming to North American markets, the program was first piloted in Chile, Costa Rica, Peru, Canada, New Zealand, Portugal and Spain.
Netflix sent the following email to subscribers who it deemed were sharing their accounts with people outside their households. Though the emails were first sent out starting today, not every Netflix subscriber has received an email yet. People who are currently sharing their account with people outside their household can either transfer an existing profile to a new account or add an extra member — at least if you have the right plan.
People who subscribe to Netflix's Basic or Standard with Ads plans do not have the option to add an extra member for the $8 fee. That means in order to keep using Netflix, people outside the main household will need to subscribe to their own Basic or Standard with Ads plan at the full monthly rates. It is worth noting that Netflix's cheapest plan, Standard with Ads, costs $7 per month and is actually cheaper than adding an extra member. People who are subscribed to the Netflix Standard plan can add one extra member, and Netflix Premium subscribers can add two extra members — still at $8 apiece.
Netflix says in a support document that your household is set based on where you watch the service on a TV connected to your home internet. Any device that is connected to the same Wi-Fi network as that TV will automatically be authorized as part of your household, and that TV can be set in the Netflix app. If one is not set manually, Netflix will select a device automatically.
For people that travel, it's still possible to watch Netflix outside your household, but it'll be a bit more difficult. Any device signed into your Netflix account must connect to your home Wi-Fi network once every 31 days to remain authorized. If not, Netflix will consider that device as being outside your household, and you'll need to add an extra member or transfer the profile to a full-price account. Extra members can access Netflix on any device, but only on one device at a time.
It's not clear how long Netflix subscribers will have to get their accounts in compliance with this new policy. However, it's likely that devices will start getting booted about a month from now, considering the 31-day authorization rule.