SEE IT: Netflix moves forward with plans to charge for password sharing

Julia Johnson

January 25, 06:17 PM January 25, 06:17 PM

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While it’s been speculated that Netflix will begin cracking down on password sharing, the company revealed in a shareholder letter last week that it could come within the first quarter of 2023.

The letter reads, “We believe we have a clear path to reaccelerate our revenue growth: continuing to improve all aspects of Netflix, launching paid sharing and building our ads offering.”

The company further notes that it is preparing to roll out the paid sharing within the first quarter of 2023.

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Netflix’s decision comes as a result of “Today’s widespread account sharing (100M+ households),” as it “undermines our long term ability to invest in and improve Netflix, as well as build our business.”

It detailed that as the rollout begins, “members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with.”

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This move isn’t coming as a surprise, as the company expressed interest in monetizing account sharing in its earnings report for the third quarter of 2022. “We’ve landed on a thoughtful approach to monetize account sharing and we’ll begin rolling this out more broadly starting in early 2023,” it said at the time.

For Netflix, the venture is designed to avoid revenue loss due to password sharing. According to analysts, the practice has cost the company roughly $6 billion a year.