Netflix widens global crackdown on password sharing

SAN FRANCISCO: In an effort to bolster revenue, Netflix has announced an expansion of its crackdown on users who share passwords with individuals outside of their immediate family. 

The leading streaming television service emphasised that a Netflix account should only be used by one household. The company revealed that over 100 million households were 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 "shared" accounts, enabling subscribers to add additional users for a higher fee or transfer viewing profiles to separate accounts. This approach was implemented in a limited number of markets. However, Netflix has now extended this policy to more than 100 countries.

Netflix's co-chief executive, Ted Sarandos, highlighted the account-sharing initiative as a means to expand their potential paying member base and ensure long-term growth. The company aims to encourage individuals using shared passwords 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 remains committed to offering seamless access to its service across various devices and locations.