Netflix Begins Password Sharing Crackdown in the US
Netflix has officially initiated its crackdown on password sharing among users in the United States.
In an email sent to subscribers, the streaming video company emphasized that accounts are intended for household use only.
Options were provided for users to share their accounts, including transferring a profile to a new membership or adding an additional member for an extra monthly fee of $7.99.
While Netflix previously overlooked password sharing as it contributed to its growth, the company now aims to curb this practice due to its negative impact on its bottom line.
It is estimated that over 100 million households worldwide share Netflix accounts. The crackdown began earlier this year in countries such as Canada, New Zealand, Portugal, and Spain.
In its recent quarterly report, Netflix announced a net increase of 1.75 million global streaming subscribers, slightly below the expectations of Wall Street analysts.
The company acknowledged a temporary negative response from users upon announcing the paid sharing option but noted subsequent increased acquisition and revenue.
As Netflix takes action against password sharing, it aims to reinforce its policy and encourage individual subscriptions to ensure fair usage and sustained growth.
