Things are about to change for all you Netflix users. It looks like there will be no more password sharing antics in the future. In the streaming service‘s latest shareholder letter, the company revealed that following a quarterly subscriber loss, there would be a focus to crack down on password sharing in an effort to regain its financial footing.
As of Q1 of 2022, the number of Netflix subscribers has decreased from 221.84 million to 221.64 million. According to Netflix’s published statement, this sharp drop in users was heavily influenced by a large number of households sharing accounts. Therefore, the company is preparing to charge users who share their Netflix accounts with people outside of their households with an additional fee – so prepare to pull out your wallets.
“Our relatively high household penetration — when including the large number of households sharing accounts — combined with competition, is creating revenue growth headwinds,” the company wrote in its letter. “Account sharing as a percentage of our paying membership hasn’t changed much over the years, but, coupled with the first factor, means it’s harder to grow membership in many markets — an issue that was obscured by our COVID growth.”
Earlier this year, Netflix launched different strategies to try and combat password sharing in Costa Rica, Peru, and Chile. The program would charge accounts extra if the streaming service spotted any passwords being shared out of the home.
Although Netflix hasn’t detailed a solid global strategy to enforce its new password crackdown initiative, it seems like changes are imminent, and could be introduced globally as earlier as 2023. This comes on the back of a cost increase across US and UK in March, raising all standard subscription prices by one pound, or one dollar, depending on your region.