NETFLIX
EXECUTIVE MEMORANDUM
Product Strategy & Global Operations
TO:
Product Engineering, Member Support, and Regional Leadership Teams
FROM:
O
ffi
ce of the Co-CEOs & Chief Product O
ffi
cer
DATE:
September 17, 2026
SUBJECT:
Net
fl
ix Password Sharing Memo
1. STRATEGIC CONTEXT & PURPOSE
Over the past decade, account sharing served as an organic discovery engine that accelerated Net
fl
ix
’
s global
expansion. However, with over 100 million households accessing Net
fl
ix through shared credentials, unauthorized
account distribution directly limits our ability to reinvest in compelling TV series, feature
fi
lms, and platform
engineering improvements.
The purpose of this
Net
fl
ix Password Sharing Memo
is to articulate the strategic enforcement architecture for Paid
Sharing, de
fi
ning the technical mechanisms used to establish a "Net
fl
ix Household," the implementation of Extra
Member slots, and standard operational protocols for cross-functional support teams.
2. DEFINITION OF A "NETFLIX HOUSEHOLD" & TECHNICAL IDENTIFICATION
A Net
fl
ix account is intended solely for people who live together in a single primary household. The technical
parameters de
fi
ning household association are structured as follows:
Primary Network Anchor:
A household is anchored to the primary internet connection established via the TV
interface. Devices connecting to the primary Wi-Fi network and launching the Net
fl
ix application are automatically
associated with that household.
Network Signals:
Identi
fi
cation relies on IP addresses, persistent device identi
fi
ers (IDs), and account activity
patterns across connected clients, rather than continuous GPS or precise physical location tracking.
Mobile & Travel Flexibility:
Members residing in the household retain unconstrained access on mobile devices,
laptops, and remote screens while traveling or commuting, veri
fi
ed via periodic re-connection or temporary one-
time access veri
fi
cation codes.
Guiding Principle:
Account integrity must not come at the expense of user convenience. Legitimate traveling members
must experience seamless transitions, while non-household users are given simple, frictionless conversion paths.
3. PRODUCT PATHWAYS: PROFILE TRANSFER & EXTRA MEMBER SLOTS
To convert shared users into monetized relationships without disrupting viewer history, product teams have activated
two core features across impacted regional rollouts:
Pro
fi
le Transfer:
Allows borrowers to migrate their personalized watch history, ratings, recommendations, and
saved queue directly into a standalone new membership.
Extra Member Add-On:
Enables primary Standard and Premium subscribers in eligible regions to purchase
additional sub-accounts (priced at $7.99/month in the US or regional equivalent) with dedicated credentials and
concurrent stream limits.
Net
fl
ix, Inc. Con
fi
dential
—
Corporate Strategy Document
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