Netflix’s crackdown on password sharing coming to more regions this summer – Times of India

Netflix’s biggest problem right now is password sharing, and to tackle this, the streaming giant introduced paid sharing, which lets users share their passwords but need to pay for it. First, introduced in four regions earlier this year, “paid sharing” seems to have brought good news for Netflix, as the company is “pleased with the results,” and now plans to expand it to more regions this quarter.
In a letter to shareholders, Netflix said, “We are planning on a broad rollout, including in the US, in Q2.”
In February, Netflix introduced the paid account sharing option in Canada, New Zealand, Portugal, and Spain. This feature allows primary account holders to pay an extra monthly fee to share their Netflix service with up to two individuals not part of their household.
Netflix had planned to expand the paid sharing plan to more countries in the first quarter. However, the company says it delayed the rollout to learn more about how customers react to the sharing plan, thus “shifted out the timing of the broad launch from late Q1 to Q2.”
So, if someone outside of the account holder’s household uses their Netflix account, they will be alerted to “buy an extra member.” Netflix allows for up to two additional members per account, with the fee for each extra user varying depending on the country.
From each rollout, Netflix learns how to implement changes best and prioritise member needs, including features such as maintaining travel/watching on the go and improving access control and profile transfers.
While the rollout may shift some membership growth and revenue benefit from Q2 to Q3, Netflix believes it will result in a better outcome for members and the business. In the long term, paid sharing will contribute to a larger revenue base, supporting future service improvements and growth.
“We see a cancel reaction in each market when we announce the news, which impacts near-term member growth,” Netflix said. “But as borrowers start to activate their own accounts and existing members add ‘extra member’ accounts, we see increased acquisition and revenue.”