Netflix has announced how it intends to crack down on the rampant sharing of account passwords in the U.S.
Netflix on Tuesday outlined how it intends to crack down on the rampant sharing of account passwords in the U.S., its latest bid to reel in more subscribers to its video streaming service as its growth slows.
The long-anticipated move, telegraphed by Netflix a year ago, seeks to end a practice that the company allowed to go unchecked for years while its streaming service was attracting subscribers in droves. At that time, management had little incentive to risk riling customers by reining in password sharing.
In February, it began blocking freeloading viewers in Canada, New Zealand, Portugal and Spain, following similar moves in Latin America. Although the new U.S. surcharge for viewers living outside subscribers’ households is less than Netflix’s basic streaming plan, it comes at a time that Amerians have been paring their discretionary spending because of high inflation. That inflationary squeeze, combined with more competition from other streaming services, is one of the main reasons Netflix has suffered a slowdown in growth.
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