Netflix has announced its plans to tackle the issue of password sharing in the US by limiting viewership of its programming to people living in the same household. In an email sent out to its 70 million US customers, Netflix stated that those who subscribe to its standard or premium plans will be able to allow another person living outside their household to use their password for an additional $8 per month. This move is aimed at reeling in more subscribers to its video streaming service amid a slowdown in growth. However, it is worth noting that the email did not specify when the changes will be enforced.
Netflix recently implemented similar changes in Canada, where subscribers can share their password with people outside their household for an additional fee. The company has been allowing password sharing to go unchecked for years, but the practice has grown so widespread that it is now affecting its revenue. An estimated 100 million people worldwide are currently freeloading Netflix's TV series and films through password sharing, which is funnelled through its paying customer base generating the bulk of its revenue.
While some may argue that this move is long overdue, others may see it as a way for Netflix to increase its profits at the expense of its customers. It remains to be seen how this move will be received by the public, but it is clear that Netflix is proceeding cautiously after rolling out changes in Canada and elsewhere. The company is still allowing subscribers to watch Netflix when they are travelling, and it has more than 232 million customers around the world. It is worth noting that Netflix is not the only company trying to tackle password sharing, as other streaming services such as Disney+ and HBO Max have already implemented similar measures.