Netflix has announced an expansion of its efforts to crack down on password sharing among its users. The streaming giant aims to strengthen its revenue by limiting password sharing to immediate family members only. In a statement, Netflix emphasized that an account is intended for use within a single household. Earlier this year, the company revealed that over 100 million households were sharing accounts, which hurt its ability to invest in new content.
To address the issue, Netflix has experimented with features like “borrower” or “shared” accounts, allowing subscribers to add additional users for a higher price or transfer viewing profiles to separate accounts in select markets. Now, the company is extending this policy to more than 100 countries. By encouraging account sharing within a household, Netflix aims to convert free users into paying subscribers without alienating its existing customer base.
Co-chief executive Ted Sarandos stated that this account-sharing initiative is part of a long-term growth strategy, enabling Netflix to expand its potential paying member base. The company believes that seamless access to its service across various devices is crucial, ensuring subscribers can enjoy their favorite content anytime and anywhere.
Despite a slowdown in growth last year, Netflix recently reported a record high of 232.5 million subscribers in the first quarter of this year. The company’s ad-supported tier has also been performing well, attracting over 5 million subscribers. Additionally, market research firm Insider Intelligence has forecasted that, for the first time, US adults will spend more time watching digital video on platforms like Netflix, TikTok, and YouTube than traditional television. The report expects traditional “linear TV” to account for less than half of daily viewing, indicating the growing dominance of digital video platforms.
Netflix’s crackdown on password sharing aligns with its efforts to maintain a strong revenue stream and continue investing in high-quality TV shows and films. By encouraging households to become individual subscribers, the company aims to secure long-term growth and ensure a sustainable future for its content production.
