Netflix logo on the side of the Netflix Tudum Theater in Los Angeles, California on September 14, 2022. Photo: Patrick T. Fallon/AFP via Getty Images
netflix will begin cracking down on password sharing in four countries, the video streaming giant announced on Wednesday.
Why is this important: The rules, which are being rolled out in Canada, New Zealand, Portugal and Spain, aim to help Netflix increase its number of paying subscribers.
- “Today, more than 100 million households share accounts, which impacts our ability to invest in new TV shows and movies,” Netflix said in a statement. statement
Driving the news: Accounts will have a primary location and there will be monthly fees for additional members on the account, Netflix said.
- Users will be able to transfer a profile to a new account and retain their personalized recommendations and viewing history.
- “Our goal has been to give members greater control over who can access their account,” the company said.
The big picture: The password crackdown is just one of many changes Netflix is implementing to optimize its subscriber numbers.
- Last year, it rolled out a cheaper, ad-supported plan to attract customers with smaller budgets.
- Netflix said on Wednesday that it was “exploring different approaches” in Latin America over the past year to deal with the high number of password sharing.
Zoom out: The streaming giant underwent a major management shake-up earlier this year when it announced co-founder Reed Hasting, Sara Fischer of Axios, was leaving the company. reports.
- Hasting led the company for more than two decades and guided the company through its transition from DVD to streaming, among other critical changes.
What to watch: The changes are expected to be introduced in the United States in March, CNBC reports.
Go further… Streamers crack down on password sharing as rollbacks rise