Breaking! Netflix Expands Crackdown on Password Sharing, Aims to Boost Revenue
San Francisco - In a bid to bolster its revenue, leading streaming television service Netflix has announced an expansion of its efforts to crack down on users sharing passwords with individuals outside their immediate family. In a statement released on Tuesday, the company emphasized that a Netflix account is intended for use by a single household.
Earlier this year, Netflix revealed that over 100 million households were engaging in account sharing, which had a detrimental effect on the company's ability to invest in new TV shows and films. In an attempt to address this issue without alienating subscribers, Netflix has experimented with "borrower" or "shared" accounts, allowing users to add additional individuals for a higher fee or transfer viewing profiles to separate accounts. This policy was initially introduced in a few markets but has now been expanded to more than 100 countries.
During an earnings call, co-chief executive Ted Sarandos stated, "This account sharing initiative helps us have a larger base of potential paying members and grow Netflix long term." The streaming giant had previously delayed implementing a broader crackdown on password sharing to enhance the overall user experience. Netflix ensured that subscribers can seamlessly access the service on various devices, including tablets, TVs, and smartphones, regardless of their location.
Netflix reported a record-high number of subscribers, reaching 232.5 million in the first quarter of this year, with its nascent ad-supported tier performing well. The company also disclosed that it had amassed over 5 million subscribers to its ad-supported tier. In a recent presentation to advertisers, Netflix highlighted that for the first time ever, US adults are projected to spend more time watching digital video on platforms such as Netflix, TikTok, and YouTube, surpassing traditional television viewing. According to forecasts by Insider Intelligence, "linear TV" is expected to account for less than half of daily viewing for the first time ever.