Netflix cracks down on password sharing globally, limiting account access to one household. It aims to generate more revenue and adapt to market saturation


Netflix Inc. has increased the scope of its crackdown on password sharing to more than 100 nations, including the US. In a statement, the company emphasized that a Netflix account is intended for one household only, implying that sharing account credentials with individuals outside the household is prohibited. Users who share their accounts with friends or family members at different addresses have to pay an additional $7.99 monthly for each extra person. 

This move comes as Netflix seeks new revenue streams amidst signs of market saturation. The company has been exploring different strategies, such as restricting password borrowing and introducing an ad-supported option. Netflix has started sending emails to users as it identifies breaking the rules and plans to continue notifying primary account holders in the coming days. Those who borrow the login will receive instructions.

In the past, Netflix had announced its intention to limit account sharing and had been testing various approaches in select markets. According to the firm, over 100 million houses globally share information with those outside their homes. As of the end of March, Netflix had a global customer base of 232.5 million paying subscribers.

The new regulations allow members of the same family to continue sharing a Netflix account and using it across several devices, even when they are away from home. While preventing unauthorized sharing outside of homes, this clause seeks to enable valid usage cases. 

By implementing stricter measures against password sharing, Netflix aims to maximize its revenue potential and ensure fair usage of its services. While the move may face resistance from some users, it reflects the company's ongoing efforts to adapt to changing market dynamics and maintain its competitive edge in the streaming video industry.

Harshita Kumar

Also, Read Microsoft introduced Windows Co-pilot in Windows 11.


 

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