Netflix takes a strong stance against password sharing. The platform has informed U.S. customers that sharing their account with individuals outside their household will result in an additional $7.99 monthly charge. Moreover, they will have the option to transfer their profile to a new paid membership.
In a bid to tackle widespread password sharing, Netflix has announced a significant policy change that will require users to pay their fair share. In an email sent to its U.S. customers, the streaming giant stated that members who share their Netflix account with individuals outside their household will face an additional monthly charge of $7.99. Alternatively, they can choose to transfer their profile to a new paid membership.
There are over 100 million non-paying households worldwide streaming Netflix. The company believes that the potential to recoup lost revenue outweighs any anticipated pushback from customers. Netflix executives remain resolute in their decision. They are convinced that taking a stand against password sharing is a necessary step for financial sustainability.
Netflix had already been experimenting with password-sharing restrictions in several countries. The company restrained users from Canada, New Zealand, Portugal, and Spain, before implementing this new policy. These previous trials likely provided valuable insights. Therefore, the company decided to crack down on unauthorized account usage.
The company is taking strict action against password sharing. Moreover the industry will closely watch how Netflix’s move unfolds. It will help them know whether other streaming platforms will follow suit.
