Netflix Sets US Password-Sharing Crackdown in Motion

Netflix Inc., the streaming media company headquartered in Los Gatos, California, has started its crackdown on US-based subscribers who share their passwords for free access to the platform.

Netflix announced on Tuesday, May 23, that it had emailed all users in the United States who it has discovered to be sharing passwords with people who do not belong to their households. The move is actually part of the company’s plan to reduce illegal use of its streaming service.

The company has been planning to do the crackdown for a long time now, and finally, it is being implemented in the U.S., which is also its home base. According to CNN Business, if the users choose to continue sharing their passwords, they would have to pay an additional fee.

For the extra member or the extension of the account, the main subscriber will be billed an extra $7.99 per month. Prior to this, Netflix has been turning a blind eye to the illegal practice, but it has been happening too long, and the company is also losing money for this.

Thus, to fuel its growth today, it has decided to collect extra payments for password-sharing. This year, Netflix will focus on growing its network to boost its revenues as well.

“Your Netflix account is for you and the people you live with — your household,” part of the email to subscribers reads.

Finally, Reuters reported that Netflix is also searching for other ways to churn out extra cash as it has faced low revenues in recent years. Its first step is the password-sharing crackdown then it will work on improving its business.

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