In a bid to boost revenue, Netflix has announced an expansion of its efforts to combat password sharing among users. The popular streaming television service has stressed that each Netflix account should only be used by one household. It has come to light that over 100 million households have been sharing accounts, which has had a negative impact on the company’s ability to invest in new content.
To convert non-paying users into subscribers, Netflix has previously experimented with options like “borrower” or “shared” accounts, allowing subscribers to add additional users for a higher fee or transfer viewing profiles to separate accounts. This approach was initially tested in select markets, but Netflix has now extended this policy to more than 100 countries
Relevant Read: Facebook owner loses $200 billion due to massive decline in share price
Ted Sarandos, the co-chief executive of Netflix, has emphasized the account-sharing initiative as a way to expand the potential paying member base and ensure long-term growth. The company aims to encourage those who have been sharing passwords to start paying for the service while maintaining positive relationships with existing subscribers. Initially, Netflix delayed taking strict actions against password sharing in order to enhance the overall user experience.
Netflix’s success continues to soar, with a record-breaking 232.5 million subscribers in the first quarter of this year. Additionally, its ad-supported tier has attracted over 5 million subscribers. The company remains dedicated to providing seamless access to its service across various devices and locations.
