The time Netflix ‘freeloaders’ have long feared will soon arrive – password sharing will be banned by the end of March.
The company shared the news in a letter to shareholders, noting that ‘widespread account sharing’ has exceeded over 100 million viewers.
These individuals, however, will be able to transfer their profiles to a new paid account, allowing them to carry over their preferences.
Netflix said 2022 had been a ‘tough year’ due to its first subscriber loss in more than a decade – its customer base fell by 200,000 subscribers in the first quarter.
‘Today’s widespread account sharing undermines our long-term ability to invest in and improve Netflix, as well as build our business.’ the company said in its letter.
‘While our terms of use limit use of Netflix to a household, we recognize this is a change for members who share their account more broadly.’
‘We believe the pattern will be similar to what we’ve seen in Latin America, with engagement growing over time as we continue to deliver a great slate of programming and borrowers sign up for their own accounts,’ the company told shareholders.
Netflix has been working to bring in more revenue, all while catering to consumers.
In November 2022, the company launched a ‘Basic with Ads’ option for $6.99 a month, compared to the ad-free version for $9.99 a month.
