Netflix logo on the side of the Netflix Tudum Theater in Los Angeles, California on Sep. 14, 2022. Photo: Patrick T. Fallon/AFP via Getty Images
Netflix is going to start cracking down on password-sharing in four countries, the video-streaming giant announced Wednesday.
Why it matters: The rules, which are being rolled out in Canada, New Zealand, Portugal and Spain, are meant to help Netflix grow its number of paid subscribers.
- "Today, over 100 million households are sharing accounts — impacting our ability to invest in great new TV and films," Netflix said in a statement
Driving the news: Accounts will have a primary location and there will be a monthly fee for extra members on the account, Netflix said.
- Users will be able to transfer a profile to a new account and keep their personalized recommendations and viewing history.
- "Our focus has been on giving members greater control over who can access their account," the company said.
The big picture: Password crackdowns is just one of many changes Netflix is implementing to juice its subscriber numbers.
- Last year, it rolled out a cheaper, ad-supported plan to lure customers with smaller budgets.
- Netflix said Wednesday that it was "exploring different approaches" in Latin America over the last year to address the high number of password-sharing.
Zoom out: The streaming giant underwent a major leadership shakeup at the beginning of this year when it announced that co-founder Reed Hasting was leaving the company, Axios' Sara Fischer reports.
- Hasting led the company for more than two decades and saw the company through its transition from DVDs to streaming, among other critical changes.
What to watch: The changes are set to be introduced in the U.S. in March, CNBC reports.
Go deeper... Streamers crack down on password sharing as cancellations rise