What Netflix is and how the subscription model works
Netflix is a streaming service you pay a monthly fee to watch movies, TV shows, and documentaries on demand. You create an account, choose a plan, and can watch as much as you want during that month. There are no contracts — you can cancel anytime, and you stop paying the next billing cycle.
Netflix makes money by charging subscribers monthly rather than by selling ads or charging per movie. The company licenses content from studios and producers, then makes that content available to all members on their plan. What you can watch depends on which Netflix plan you choose, and Netflix changes its catalog regularly — shows and movies come and go based on licensing agreements.
You watch through the Netflix app on your phone, tablet, computer, or TV. Netflix remembers where you stopped watching and recommends shows based on what you've watched before. If you have multiple people in your household, you can create separate profiles so each person gets their own recommendations and watch history.
Key Takeaways
- Netflix charges a monthly fee and you can watch unlimited content on your plan — there are no per-movie charges or hidden fees beyond the subscription price.
- Different plans let different numbers of people watch at the same time and offer different video quality, so the plan you choose affects both cost and how many household members can use it simultaneously.
- You can pause or cancel your subscription at any time without penalty, and you stop being charged the month after you cancel.
- Netflix's catalog changes constantly as licensing agreements expire, so a show you want to watch may not be available when you look for it.
- You need an internet connection to stream, and the speed of your connection affects picture quality — faster internet supports higher resolution.
Netflix plan options and what each one includes
Netflix offers several subscription tiers, and the price and features of each plan change over time. The main difference between plans is how many people can watch at the same time and the video quality you receive.
The most basic plan typically allows one person to watch at a time in standard definition (SD), which is lower resolution. Mid-tier plans usually allow two or more people to watch simultaneously and offer high definition (HD) or 4K resolution. Netflix also offers plans with ads, which cost less per month but include commercials during shows and movies.
To see current plan prices and features, log into Netflix or visit their website — prices vary by country and change periodically. When you sign up, Netflix lets you choose your plan before you enter payment information, so you know exactly what you're paying before your first charge.
How to set up your Netflix account
Start by going to Netflix.com or opening the Netflix app. Click the sign-up button and enter your email address and a password you create. Netflix will ask you to choose a plan and enter a payment method — a credit card, debit card, or other payment option Netflix accepts in your country.
After you complete payment information, Netflix sends a confirmation email to the address you provided. You can start watching when ready. If you're signing up on a phone or tablet, you may need to read the Netflix app from your device's app store first, then sign in with the email and password you created.
Once you're signed in, you can create up to five profiles on a single account — one for each person who will watch. Each profile has its own watch history, recommendations, and settings. You can switch between profiles by clicking your profile icon and selecting a different name.
Payment methods and billing cycles
Netflix accepts credit cards, debit cards, and sometimes PayPal or other digital payment methods depending on your country. When you sign up, Netflix charges your payment method on the date you choose, then charges you again on the same date each month.
Your billing date stays the same every month unless you change it. You can update your payment method anytime in your account settings. If a payment fails, Netflix usually sends you a notification and may pause your account until you provide a working payment method.
Netflix does not charge setup fees or cancellation fees. If you cancel, you keep access until the end of your current billing period, then your account stops working. If you rejoin later, Netflix remembers your profiles and watch history.
What internet speed you need and how to watch
Netflix works on any internet connection, but faster speeds give you better picture quality. Netflix recommends at least 3 megabits per second (Mbps) for HD quality and 25 Mbps for 4K. If your internet is slower, Netflix automatically reduces picture quality so the video doesn't stop and start.
You can watch on almost any device: smartphones, tablets, computers, smart TVs, streaming devices like Roku or Amazon Fire Stick, and gaming consoles like PlayStation or Xbox. read the Netflix app from your device's app store, sign in with your email and password, and start watching. On a computer or web browser, you can go directly to Netflix.com and watch there.
Netflix also lets you read shows and movies to watch later without an internet connection — useful for travel or when your connection is unreliable. The read feature is available on phones and tablets, and downloaded content expires after a set time.
Canceling your Netflix subscription
To cancel, sign into your Netflix account on a computer or the app, go to Account Settings, and look for a Cancel Membership or Cancel Subscription option. Netflix asks you to confirm and may offer you a discount to stay, but you can proceed with cancellation.
After you cancel, you keep access until the end of your current billing period. Netflix does not refund the month you've already paid for. If you cancel on the 15th of the month and your billing date is the 20th, you can watch until the 20th, then your account stops working.
You can rejoin Netflix at any time. When you do, Netflix restores your profiles and watch history from before you canceled. There is no penalty for canceling and rejoining.
Sharing your account with others
Netflix allows multiple people to watch on one account through separate profiles, but the number of people who can watch at the same time depends on your plan. A basic plan allows one person at a time; higher tiers allow two, four, or more simultaneous streams.
If more people try to watch than your plan allows, Netflix pauses one stream and asks someone to stop watching. This is not a penalty — it just means your plan doesn't support that many people watching at once, and you'd need to upgrade to a higher tier.
Netflix's terms of service state that accounts are for personal use within a household. Sharing your account with people outside your home may violate these terms, and Netflix has begun asking users to verify household members in some regions. Check Netflix's current policy in your country for details on what sharing is allowed.
Frequently Asked Questions
Can I pause my Netflix subscription instead of canceling?
Netflix does not offer a formal pause feature, but you can cancel and rejoin anytime without losing your profiles or watch history. Some regions may have a pause option — check your account settings or contact Netflix support to see if it's available where you are.
What happens if I don't watch Netflix for a long time?
Netflix continues to charge you monthly as long as your account is active, even if you don't watch anything. If you don't plan to use it, you need to cancel to stop being charged. You can always rejoin later.
Can I change my plan after I sign up?
Yes. Sign into your account, go to Plan Settings, and choose a different tier. Changes take effect when ready or at your next billing date depending on whether you're upgrading or downgrading. Netflix tells you the effective date before you confirm the change.
Do I need a credit card to sign up for Netflix?
Netflix requires a payment method to create an account. In most countries this is a credit or debit card, but some regions accept PayPal, gift cards, or other options. Check what payment methods Netflix accepts in your country during sign-up.
Why is a show or movie I want to watch not on Netflix?
Netflix licenses content from studios for a set time period, then the license expires and the content is removed. Netflix has no control over which shows and movies are available — that depends on agreements with the companies that own them. Content rotates in and out regularly.