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Netflix to crack down on password sharing in the US

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Netflix has started its long-planned crackdown on password sharing among users in the US. 

In an email to all US subscribers, the streaming giant emphasized Netflix accounts are intended for household use only. 

The email presented options for users to share their accounts.

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It includes transferring a profile to a new membership the recipient pays for or adding an extra member to their account with an additional monthly fee of $7.99.

While Netflix previously tolerated password sharing as it contributed to its growth, the company has now decided to address the issue as it negatively impacts its financial performance. 

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It is estimated over 100 million households worldwide share Netflix accounts. 

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Earlier this year, Netflix began implementing measures to curb password sharing in countries such as Canada, New Zealand, Portugal, and Spain.

In its recent quarterly report, Netflix disclosed a net increase of 1.75 million global streaming subscribers, a growth of almost 5 percent compared to last year. 

However, this figure fell short of the expectations of Wall Street analysts, who anticipated over 3 million new subscribers. 

During an earnings call, Netflix acknowledged a temporary cancellation response from users when the paid sharing option was announced but noted subsequent increased acquisition and revenue.

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