On Tuesday, the world’s largest streaming giant, Netflix warned its users that a global crackdown on password sharing is heading their way. This could bring an end to the common practice of using a family member or friend’s login credentials to access the platform.
The global streaming juggernaut ended the first three months of the year with 200,000 fewer subscribers, well below its prediction of gaining 2.5 million paying customers. The company lost 700,000 subscribers in early March after its decision to suspend service in Russia after the country invaded Ukraine.
According to an estimation Netflix shared, over 100 million households are using shared passwords to access its content globally, with over 30 million of these households located in the US and Canada. The company shared the estimate as it announced its plans to introduce more effective monetization of multi-household sharing. In the US and Canada, the platform’s subscriber base dropped from 75.2 million in Q4 2021 to 74.5 million in Q1 2022.
The quarterly shareholder’s letter further admitted that the company’s decision to turn a blind eye to password sharing all these years likely fueled the video-streaming service’s growth. However, the company now wants the account holders supplying the freeloaders to pay for the service they’re using.