Feb 8, 2023 - Economy & Business

Netflix password-sharing crackdown starts soon in four countries

Netflix logo is seen on the side of the Netflix Tudum Theater in Los Angeles, California, on September 14, 2022.

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

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