Why Password-Sharing Days Are Over For Netflix Subscribers In The US?

International

oi-Prakash KL

In an attempt to boost revenue and subscriber numbers, streaming giant Netflix has started a crackdown on password sharing in the US. As a result, people outside the household of the subscriber cannot use the account for free, henceforth.

“Starting today, we will be sending this email to members who are sharing Netflix outside their household in the United States. A Netflix account is for use by one household. Everyone living in that household can use Netflix wherever they are – at home, on the go, on holiday – and take advantage of new features like Transfer Profile and Manage Access and Devices,” Netflix said in a blog on Tuesday.

People have to shell out an additional $7.99 per month for an extra member slot if they have to share their Netflix account outside their household.

“We recognize that our members have many entertainment choices. It’s why we continue to invest heavily in a wide variety of new films and TV shows – so whatever your taste, mood or language and whoever you’re watching with, there’s always something satisfying to watch on Netflix,” the statement from the streaming giant said.

It has to be noted that extra members can be added to its standard and premium plans without ads. However, paid sharing is not available in all countries.

Netflix cuts subscription rates in 116 countries after success in India

Over 100 million households share accounts which has affected its ability to invest in new content, the company said earlier. The streamer had issued password-sharing guidance in New Zealand, Canada, Portugal and Spain earlier.

In April, Netflix slashed subscription rates in 116 countries following the success of its business model in India. There has been a 30 per cent growth in customer engagement and 24 per cent revenue growth in the last two years in India after it launched a low-priced subscription plan in the country in 2021.

“These reductions — combined with an improved slate — helped grow engagement in India by nearly 30 per cent year-on-year while F/X (forex) neutral revenue growth in 2022 accelerated to 24 per cent (versus 19 per cent in 2021). Learning from this success, we reduced prices in an additional 116 countries in Q1,” Netflix said in its earnings report for March 2023 quarter.