The Netflix logo will appear on the company’s website on February 2, 2023 in New York. On Tuesday, May 23, 2023, Netflix outlined its intentions to crack down on rampant account password sharing in the United States, announcing the latest efforts to grow subscribers for its video streaming service amid slowing growth.Richard Drew/AP Hide Captions
. Richard Drew/AP
Richard Drew/Associated Press
More than a year after Pivot was first announced, Netflix is rolling out a crackdown on password sharing.
The streaming company limits password sharing to people living in the same household. Account holders can also add non-family users for an additional $7.99 per month, or use the “Profile Transfer” feature to encourage additional users to create their own accounts by paying a fee, Netflix said. announced on Tuesday.
Netflix said out-of-household users should start receiving emails about the change on Tuesday.
Netflix says people in the same household should be able to access their accounts while traveling or on the go.
The company said in March 2022 that it has so far encouraged account sharing with features like profiles and multiple streams, but the practice “impacts our ability to invest in great new TV and movies for our members.” said.
As back then, consumers weren’t happy with this switch.
“By the time Netflix cracks down on password sharing and Max locks you out of your HBO Max account, what a great day for endless streaming possibilities!” one user tweeted.
“I’ve been on @netflix since maybe 2010,” said another. “I have never canceled even with a price increase. But I think this password sharing crackdown plan is a last resort.
“It’s time to cancel Netflix! No one pays more to share their best friend’s password,” said one user.
According to the company, more than 100 million households participate in password sharing. As of April, it had 232.5 million subscribers.
Netflix had previously tested paid password sharing in international markets such as Chile, Costa and Peru in 2022. Earlier this year, the company expanded paid account sharing to Canada, New Zealand, Portugal, Chile and Spain. The company said in a letter to shareholders at the end of the first quarter of this year that it had achieved good results.
“Like in Latin America, the announcement of this news has resulted in a cancellation response in each market, which will have an impact on membership growth in the short term.” But as borrowers start activating their accounts and existing members add “additional member” accounts, we see an increase in earnings and revenue. ”
Netflix brought in about $8.2 billion in revenue in the first quarter of 2023, compared with about $7.9 billion at the end of the first quarter of 2022, according to a letter to shareholders.
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