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Netflix Cracks Down On Password Sharing

By Oke Odunmorayo
24 May 2023   |   9:15 am
Netflix, the world's largest streaming service, has begun cracking down on password sharing. The company is now sending emails to subscribers who share their accounts with people outside of their household, warning them that they will need to start paying for additional users. Netflix has long turned a blind eye to password sharing, but the…

Smartphone with Netflix logo is placed on a keyboard in this illustration taken April 19, 2022. REUTERS/Dado Ruvic/File Photo/File Photo

Netflix, the world’s largest streaming service, has begun cracking down on password sharing. The company is now sending emails to subscribers who share their accounts with people outside of their household, warning them that they will need to start paying for additional users.

Netflix has long turned a blind eye to password sharing, but the company is now under pressure to increase revenue. In the first quarter of 2023, Netflix lost 200,000 subscribers, its first subscriber loss in over a decade. The company blamed the loss on a number of factors, including increased competition from other streaming services, such as Disney+ and HBO Max.

Netflix is hoping that cracking down on password sharing will help to increase revenue. The company estimates that up to 100 million households are using Netflix accounts that they do not pay for. If Netflix can convert even a fraction of those users into paying customers, it could generate billions of dollars in additional revenue.

The crackdown on password sharing has been met with mixed reactions. Some subscribers are angry that Netflix is trying to charge them more money for something they have been doing for free for years. Others are more understanding, and they believe that Netflix is justified in trying to recoup some of the revenue that it is losing to password sharing.

Here’s how Netflix prices its tiers in the United States:
Standard ad-supported (2 devices at a time): $6.99/month
Basic (1 device at a time): $9.99/month
Standard (2 devices at a time): $15.49/month
Premium (4 devices at a time): $19.99/month