Things have been a little bumpy for Netflix lately. Despite record-breaking shows like Bridgerton season 2 and amazing response to the Stranger Things trailer, Netflix still seems to be losing subscribers for the first time in decades. So as a backup strategy, Netflix is going to proceed with a Password Sharing crackdown.

Can one avoid this crackdown? Let us try to find out.

New terms and conditions

Netflix, the world’s largest streaming video service, has issued a global warning about password sharing. This time, it appears to be a serious warning, and it may signal the end of the widespread habit of borrowing a family member’s or friend’s login credentials.

Netflix says that more than 30 million homes in the United States and Canada use a shared login to access its content.  According to the service, more than 100 million extra homes throughout the world are expected to utilize a shared password.

Netflix stated in its quarterly shareholder letter that it had purposely permitted generous out-of-home password sharing because it has helped consumers get addicted to the service. The streamer claims it wants the millions of homes sharing passwords to start paying, citing competition from Disney, Warner Bros. Discovery, Paramount Global, NBCUniversal, Apple TV+, and other streamers.

There are presently 222 million members of the streaming platform throughout the world. It saw rapid growth during the pandemic. But as Covid-19 quarantine restrictions are no more, that growth has gone negative.

Netflix has tolerated password sharing because, in the words of co-founder and co-CEO Reed Hastings, the firm was “doing fine” without taking any drastic measures.

Netflix began exploring several approaches to prevent password sharing in Chile, Costa Rica, and Peru earlier this year.

At the company’s earnings conference on Tuesday. Executives indicated the company might expand the model it established in those nations, charging more for customers that exchange passwords outside of the house. Netflix has yet to lay out a precise worldwide plan. Although it has hinted that global changes might arrive as early as 2023.

Can you escape the Netflix Password Sharing crackdown?

So far, the crackdown is still active in a few countries. The rest of the world seems to be safe for the foreseeable future. But after that, no one knows what measure Netflix will take if they keep losing subscribers like this.

Also, Netflix is going to start experimenting with advertisements and non-advertisements accounts. So if that proves to be successful. Maybe then password crackdown won’t happen after all, since its effectiveness may not be fool-proof. But no promises for now.

Let us know if you’ll be willing to pay an additional fee if the password-sharing terms and conditions are updated in the future.