Netflix to Expand Password Crackdown to U.S. in Q2 With Paid-Sharing Plans
variety.comTodd Spangler NY Digital Editor Netflix said it would stage a “broad rollout” of its paid-sharing plan in the second quarter of 2023, including in the U.S.
The streamer announced the news as part of its first quarter 2023 earnings report. As part of Netflix’s crackdown on customers sharing passwords with people outside their household, the company plans to start blocking devices (after a certain period of time) that attempt to access a Netflix account without properly paying. “In Q1, we launched paid sharing in four countries and are pleased with the results,” Netflix said in its Q1 letter to shareholders. “We are planning on a broad rollout, including in the U.S., in Q2.” The four markets it is referring to are Canada, New Zealand, Portugal and Spain, where in February Netflix launched a “buy an extra member” option that lets primary account holders pay an additional monthly fee for a sub-account for 1-2 people they don’t live with.
That came after Netflix last year launched paid-sharing tests in three Latin American countries (Chile, Costa Rica and Peru).
Netflix said the move to convert password-piggybackers into paying members produces an elevated volume of cancelations, leading to a hit on near-term subscriber growth. “This will not be a universally popular move,” Netflix co-CEO Greg Peters said on the Q4 2022 earnings interview, likening it to an uptick in churn when the company has raised prices on its streaming plans.
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