The Days of Netflix Password Sharing Are Coming to an End

The free ride you may have been enjoying won't last forever.

Many people consider Netflix their favorite streaming service. And many people who use Netflix also don't pay for it. That's because Netflix has allowed users to share their accounts with others for years. 

But USA Today recently reported that practice will soon come to an end. And in the coming months, Netflix fans might have to pay more for their service -- either to add additional users to their accounts or get accounts of their own.

No more password sharing

Password sharing clearly costs Netflix a lot of money. Up until now, the streaming service has looked the other way on account sharing, but now, it intends to crack down. And in the coming months, it plans to roll out a paid sharing model that's apt to cost existing subscribers more money.

Netflix actually introduced a shared account option in Latin America, where subscribers could add a sub-account for $3 a month. That's not a bad deal, and if Netflix adopts a similar model here in the U.S., it could allow many users to continue sharing their passwords with family members and friends with minimal financial pain. 

But we don't know how expensive the password sharing option will end up being. And subscribers who wish to go this route could see their bills soar. 

Plus, we don't know how restrictive Netflix's password sharing model will be. So those who have been using Netflix accounts that belong to friends and family members may need to prepare to pay for their own accounts. That could be problematic at a time when so many people are grappling with inflation and raiding their savings accounts just to cover their basic bills. 

Should you start paying for Netflix?

If you've been accessing Netflix through somebody else's account, that option may soon be off the table. So is it worth adding a Netflix charge to your ongoing credit card tab? 

Well, it depends on what your finances look like and how much use you think you'll get out of the service. If you find that you use Netflix frequently, then a subscription could be worth it. And you have different options in that regard.

A basic Netflix account costs $6.99 a month, but you'll be subject to ads that interrupt your content. If you don't want to deal with that, you'll need to prepare to pay $9.99 for a basic ad-free plan (which comes with less superior video quality), $15.49 a month for a standard plan, or $19.99 for a premium plan with better video quality.

The good thing about Netflix is that you don't have to sign a contract. You can cancel your service at any time. 

Granted, it may be worth sitting back and waiting to hear how Netflix's shared account model will work before rushing to get an account of your own. We may find that Netflix makes it easy and affordable to continue sharing accounts. But it's also a good idea to start taking a look at your budget and seeing how Netflix might fit in -- just in case the rules for shared accounts end up being too limiting.