The most popular streaming service in the world, Netflix, has begun enforcing stricter policies regarding the sharing of login credentials. Customers who share their accounts with persons who do not live in their household are being warned through email by the provider that they will soon be required to start paying for additional users if they do not want to lose access to their accounts.
Netflix has for a very long time chosen to ignore the practice of exchanging passwords; nonetheless, the corporation is currently under pressure to raise income. Netflix saw its first drop in membership during the first three months of 2023 when it shed 200,000 customers. This was the company’s first drop in membership in more than ten years. The business stated that the loss was due to a number of circumstances, one of which was increased competition from rival streaming services like Disney+ and HBO Max.
Netflix is taking measures to prevent users from disclosing their passwords in the hopes that this will lead to an increase in income. According to the company’s estimations, as many as one hundred million homes are utilizing Netflix accounts for which they do not pay. If Netflix is successful in converting even a small percentage of those people into paying subscribers, the company may see an increase in revenue in the billions of millions.
The crackdown on the practice of exchanging passwords has been received with a range of responses. Some Netflix members are upset because the streaming service is attempting to charge them additional fees for a feature that they have been able to use for free for many years. Some people are more understanding, and they think that Netflix has a right to try to reclaim some of the cash that it is losing due to password sharing. These people believe that the company is legitimate in taking this action.
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