Netflix Cracks Down on Password Sharing: Additional Charges for Viewers Outside U.S. Subscribers’ Households.

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New Measures To Curb Password Sharing

In an effort to boost subscriber numbers and counter its slowing growth, Netflix has announced its plans to address the widespread sharing of account passwords in the United States. The streaming service will now limit viewership of its content to individuals residing within the same household. However, subscribers of Netflix’s standard or premium plans will have the option to allow one additional person living outside their household to use their password for an extra fee per month.

Discounted Option for Non-Household Viewers

Netflix’s standard and premium plan subscribers can grant access to one person outside their household by paying an additional fee per month. This represents a discount compared to the company’s basic plan. The specifics of how Netflix will authenticate subscriber identities or accounts remain undisclosed, but the company assures that all members of a U.S. customer’s household will still be able to enjoy streaming TV series and movies, regardless of their location.

Cracking Down on Widespread Practice

For years, Netflix allowed password sharing to go unchecked as it experienced rapid subscriber growth and had little incentive to upset customers. However, with lackluster subscriber growth and increasing competition, the company is now taking a firmer stance. The crackdown on password sharing initially started in several countries, and now the measures are being implemented in the United States and the United Kingdom. Netflix has sent letters to British subscribers identified as sharing their passwords outside their households, reminding them that their account is intended for personal use.

Challenges and New Strategies

Netflix’s move to curb password sharing coincides with the introduction of an ad-supported monthly plan. The company has gained additional subscribers globally since its launch, but not all of them have chosen the lower-priced plan. The surcharge for viewers outside subscribers’ households in the U.S. comes at a time when Americans are cutting back on discretionary spending due to high inflation. This, along with increased competition, has contributed to Netflix’s growth slowdown. The company encourages subscribers to review their account devices, sign out unauthorized devices, and consider changing their password for added security.

Future Outlook

Netflix’s efforts to encourage more viewers to pay for access to its programming are aimed at revitalizing its subscriber growth. By implementing stricter measures against password sharing, the company aims to ensure a fair and sustainable business model. While these changes may face some initial resistance from users, they are part of Netflix’s strategy to maintain its position in the highly competitive streaming market and continue providing quality content to its subscribers.

SOURCE: Ref – By Theo Farrant  with AP 

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