Netflix Inc has extended its efforts to combat password sharing to over 100 countries, including the United States. Users are now being notified that sharing their accounts outside of their households is no longer permitted free of charge. To explore additional revenue streams amid market saturation, the streaming video pioneer has implemented measures such as restricting password borrowing and introducing an ad-supported option.
Netflix Got No Chill
In a recent announcement, Netflix stated that it has sent emails to customers in 103 countries and territories, including major regions like the United States, Britain, France, Germany, Australia, Singapore, Mexico, and Brazil. These emails emphasize that a Netflix account should only be accessed within a single household. However, paying customers have the option to include a member outside their home by paying an extra fee, which amounts to $8 per month in the United States. Users can also transfer a person’s profile to retain their viewing history and recommendations.
Netflix had previously revealed its plans to curtail account sharing and had been testing different approaches in select markets. The company estimated that over 100 million households had shared their login credentials with friends and family outside their residences. As of the end of March, Netflix had a global customer base of 232.5 million paying subscribers.
Under the updated policies, individuals living in the same household can continue to share a Netflix account and enjoy its content on various devices, even while traveling.
With more and more players entering into the streaming space, when it comes to the macroeconomic environment, the companies are prioritizing profitability and budget-strapped consumers are coping with less discretionary dollars, companies like Netflix are looking to combat both with changes like their new ad-supported tier and password-sharing limitations.
1 Million Users Quit In Spain
Meanwhile around 10 lakh users in Spain have ditched Netflix, because of their crackdown against password sharing. Users ditching Netflix have tripled due to the crackdown against password sharing.
Not Just the Password Sharing, Stiff Competition Captures Netflix’s Market Share
While the dominating player Netflix continues to lose market share, other major streaming services, including Hulu, Disney+, and TV YouTube, have remained relatively stable. Meanwhile, HBO Max, Peacock TV, and Paramount Plus have seen growth in market share over the past few quarters and have proven to be the next big companies to look out for.
Let’s see how the password sharing combat for Netflix goes and what all happens in the streaming space. Till then….
