Netflix cracks down on password-sharing

Published May 24th, 2023 - 09:37 GMT
Netflix cracks down on password-sharing

ALBAWABA - Netflix has initiated its efforts to curb password sharing among users in the United States, media outlets reported on Tuesday. 

The popular video streaming company sent emails to U.S. subscribers who share their account passwords with individuals outside their household. The email sent to users clearly states that a Netflix account is intended for personal use within one's household. 

This move is part of their planned strategy to limit unauthorized password sharing.

 However, the company provides options for users to share their account in a compliant manner.

 To share an account with someone outside the household, users can either transfer a profile to a new membership that they pay for or add an additional member to their account for a monthly fee of $7.99.

Netflix, in the past, turned a blind eye to password sharing as it contributed to the company's growth. 

However, the negative impact on their financial performance prompted them to address this issue. It is estimated that over 100 million households worldwide share a single Netflix account.

 As a result, the company has already implemented measures to combat password sharing in several countries, including UK, Canada, New Zealand, Portugal, and Spain.

In their recent earnings call, Netflix reported a net increase of 1.75 million global streaming subscribers in the first quarter. 

While this figure reflects a 5 percent growth compared to the previous year, it fell short of the expectations set by Wall Street analysts, who predicted over 3 million new subscribers.

Netflix acknowledges that announcing the crackdown on password sharing has resulted in a temporary cancellation response from users in each market. However, they have observed an overall increase in user acquisition and revenue as a direct result of these measures.

By implementing stricter account policies and encouraging compliant sharing options, Netflix aims to protect its content and ensure a fair distribution of services among its subscribers.

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