As part of a long-planned move to limit password sharing, the streaming video company announced on Tuesday that it is now sending emails to all US subscribers who share passwords with people outside their households. “Your Netflix account is for you and the people you live with — your household,” the email states, followed by options for sharing the account. To share an account with someone outside the household, a user can transfer a profile to a new paid membership or add an extra member to their account for an additional $7.99 monthly fee.
According to Technology News UK, Netflix previously ignored password sharing because it was fueling growth. However, it announced last year that it would crack down on password sharing because it hurts its bottom line. It has previously been estimated that over 100 million households around the world share an account. The business started taking action against password sharing earlier this year in a number of nations, including Canada, New Zealand, Portugal, and Spain.
In the first quarter, Netflix (NFLX) reported a net increase of 1.75 million global streaming subscribers, up nearly 5% from the previous year’s corresponding period but less than the more than 3 million Wall Street analysts had anticipated. In a recent earnings call, Netflix said it had observed an increase in “acquisition and revenue,” as well as a “cancel reaction in each market when we announce the news” regarding the paid sharing option.
