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Netflix users threaten to cancel subscriptions over account sharing crackdown: 'Guess we're not watching'

Netflix is facing backlash online after 'errantly' revealing plans to restrict subscribers from sharing passwords with users outside of the home location.

Netflix is facing a wave of backlash after inadvertently revealing new details on the company's effort to restrict subscribers from sharing passwords with people outside their homes.

Earlier this week, the "Sharing your Netflix account" pages on the streaming giant's domestic webpage said "anyone in your household (those who live with you at your primary location)" can use a Netflix account.

Those not part of what Netflix considers a household will have to get their own account or the owner of the account that others have been using can add them as an "extra member" for an additional fee, according to the webpages. 

The rules were removed from Netflix's website on Wednesday after going viral and a company spokesperson said the rules do not currently affect subscribers in the United States. The spokesperson confirmed the company continues plans to unveil its new plans to cut back on password sharing by the end of March, but some of the "errantly" posted components of the move will be staggered or altered. 

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Prominent Twitter accounts were not happy about the news. They questioned how potential rule changes could affect those traveling, those with more than one household and families with kids away at college.

There was also criticism while the phrase "NETFLIX REVERSE YOUR DECISION" trended on Wednesday. One aspect that drew particular criticism was that users had to connect to the Wi-Fi at their primary location and log into Netflix at least once every 31 days. Those who are traveling would have to request a code to use when signing in, to avoid being blocked.

YouTuber and reporter Philip DeFranco wondered how many people would simply begin pirating shows rather than indulge Netflix's proposed rules. 

"They've somehow become one of the sh----est streamers after being the biggest uncontested rockstar for years," he added.

Luggage Drop CEO Bobby Davenport revealed he has been on the same Netflix account since 2012 but will cancel his subscription after the next month. He added that he would not "jump through hoops" to use the service where and when he wants.

"If I want to watch at the office, vacation home or in the back seat of the car. That's what I'm (over)paying for," he said.

Some Twitter users, like JTA News journalist Orge Castellano, resurfaced an old Netflix tweet from 2017 when the company said, "love is sharing a password."

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"The only reason i don't pirate every show like i used to is the convenience of using a shared family netflix acc, even this kind of slight inconvenience is enough for me to just use free streaming services (pirated) - its one google search away," Twitch streamer Hasanabi said.

"This assumes every house has wifi. But in low-income homes the only internet connection is often hotspotting via phones. Discriminatory move by Netflix," postgraduate student and content creator Asher Wolf said.

Other Twitter users also flamed the proposed rule changes and predicted other problems for subscribers of the streaming giant.

Some companies, like the Roku Channel, used the situation as an opportunity to promote their own streaming platforms.

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The cost of adding an "extra member" to an account with a standard or premium plan is "less than the price of [Netflix's] basic plan," the now-removed Help Center pages said. That additional monthly fee will be charged to the person whose account the "extra member" gets added to.

"When someone signs into your account from a device that is not part of your primary location, or if your account is accessed persistently from another location, that device may be blocked from watching Netflix," the website also states.

To detect devices linked to the primary location of an account, the company said it uses IP addresses, device IDs and account activity. The account's designated main household must sign in from the home WiFi network at least one every 30 days to avoid restrictions on the account. 

People can still use the streaming service while traveling or living "between different places" by using a temporary access code or updating the primary location of an account.

In a January shareholder letter, Netflix said that over 100 million households engaged in account sharing, something the company said "undermines [the] long-term ability to invest in and improve Netflix, as well as build our business."

The company plans for the new sharing system to launch "more broadly" next month. 

 Fox Business' Aislinn Murphy contributed to this report. 

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