Netflix has announced its crackdown on password sharing and introduced a new sharing policy for its users in the United States. In an email sent to members, Netflix emphasized that accounts are intended for sharing within a single household. To ensure compliance, the streaming service offers two options: transferring a profile to someone outside the household, allowing them to start their own paid membership, or paying an additional fee per person outside the household.
Netflix’s decision to enforce stricter guidelines on password sharing is driven by its aim to boost revenue and subscriber numbers. With more than 100 million households sharing accounts globally, approximately 43% of its user base, Netflix believes that this practice has hindered its ability to invest in new content.
While the rollout of this policy has faced some resistance and initial cancellations, Netflix executives compare it to price increases, where customers eventually return and sign up for their own accounts. Additionally, the company has observed that those who borrow passwords often activate their own accounts and become “extra member” accounts, leading to increased revenue.
This move by Netflix is part of a broader trend in the streaming industry, as media companies seek ways to make their platforms profitable. Some have introduced cost-cutting measures, advertising, or new pricing tiers to attract more customers.
As Netflix continues to evolve its strategies, it remains committed to delivering quality content and enhancing the user experience. Thank you for your understanding and continued support.