Netflix starts password sharing crackdown in US
Streaming giant, Netflix, has launched a global crackdown on password sharing in over 100 countries, including the United States. The action was taken to reduce market saturation and boost revenue growth. In the past, Netflix has limited password borrowing; however, this latest campaign goes a step further by ending free account sharing outside of the customer’s home. Users who share accounts will receive an email from Netflix notifying them that their account is only for household use. Adding a member outside of one’s home requires an additional fee of $8 per month in the US. Although the company is cracking down on account sharing, it has provided options for paying customers who can add a member outside of their homes and transfer a person’s profile, keeping their viewing history and recommendations.
The recent change means Netflix will disallow passwords bouncing from house to house, reducing the number of users accessing one account globally. The new policy still allows people within the same household to enjoy content at home or on various devices when traveling. However, the subscription-sharing patterns outside families mean Netflix may potentially miss out on significant revenue. The company has estimated that over 100 million households worldwide shared their login credentials, summing up to a significant loss of revenue annually. By limiting the number of subscribers and introducing the new ad-supported options, Netflix hopes to maintain its market stride positively.
FAQs:
1. What is Netflix’s new update about password sharing?
In an attempt to increase revenue, Netflix has launched a global crackdown on password sharing in over 100 countries worldwide, ending free account sharing outside the customer’s household.
2. Can Netflix users still share accounts with family members living in the same household?
Yes, users can still share their accounts with family members living in the same household and access content on various devices while traveling.
3. What if subscribers add members outside their home?
Paying customers can add members outside their home for an additional fee of $8 per month in the US. They can also transfer a person’s profile, which includes viewing history and recommendations, to the new member’s account.
4. Why is Netflix launching this initiative?
Netflix’s recent change is aimed at reducing market saturation and increasing revenue. The streaming giant estimates that more than 100 million households share login credentials, leading to a considerable loss of income.
5. Are there any other new Netflix options for subscribers?
Netflix has introduced a new ad-supported option aimed at retaining and attracting new subscribers. It aims to maintain its market dominance and industry-wide acclaim as it faces increasing competition from rival streaming services.
Netflix to implement password sharing crackdown in the US
Netflix has extended its campaign against password sharing to more than 100 countries, including the United States, warning users that their accounts cannot be shared for free outside of their households. The streaming giant has been exploring innovative ways to make money as it confronts signs of market saturation, with efforts that include limits on password borrowing, as well as a new ad-supported option. As part of its latest push, Netflix is sending emails to users in 103 territories, which inform them that the service is only intended for household usage. Paying customers can add new members outside of their homes for an additional fee of $8 per month in the US.