San Francisco: In a bid to boost revenue, Netflix has announced an expanded crackdown on users who share passwords with people outside their immediate family.
The leading streaming television service emphasizes that a Netflix account should only be used by one household. The company revealed that more than 100 million households are sharing accounts, negatively impacting their ability to invest in new content.
As part of its strategy to convert non-paying users into subscribers, Netflix has previously experimented with “borrower” or “joint” accounts, allowing subscribers to add additional users for a higher fee. Enables adding or moving viewing profiles to separate accounts. This approach was implemented in a limited number of markets. However, Netflix has now extended this policy to over 100 countries.
Netflix’s co-chief executive, Ted Sarandos, highlighted the account sharing initiative as a means to expand its potential paying member base and ensure long-term growth. The company’s goal is to encourage shared password users to start paying for the service, while also maintaining positive relationships with existing subscribers. Initially, Netflix postponed a comprehensive crackdown on password sharing to enhance the overall user experience.
With a record-breaking 232.5 million subscribers in the first quarter of this year, Netflix continues to thrive. Additionally, its ad-supported tier has garnered over 5 million subscribers. The Company is committed to offering seamless access to its Service across devices and locations.
