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Netflix has finally implemented its long-awaited crackdown on password sharing in the United States. The streaming giant is now charging an additional $7.99 USD (about Ksh 1103) per month for users who share their Netflix passwords with individuals outside their household.
In an email to its U.S. customers, Netflix emphasized that accounts are intended for the account holder and those residing in the same household. To comply with the new policy, users have the option to transfer the shared profile to a new membership or pay the extra fee.
While Netflix has stated that paid sharing is not yet available in all countries, the company has started blocking devices after a specific period of time as part of its enforcement process.
It is important to note that this crackdown does not affect members who use Netflix to access the service. However, those on the ad-supported plan will not be able to add an additional member to their account.
Netflix anticipates some initial cancellations as a result of this policy change, comparing it to a price increase.
The company remains confident that revenue growth will still occur as users either sign up for their own Netflix accounts or purchase the extra member facility to share with others.
In a letter to shareholders, Netflix co-CEO Greg Peters expressed optimism about the impact of the crackdown on the company’s membership and revenue.
Note that rollouts of similar changes will occur in numerous global markets in the upcoming weeks and months.
