Netflix is cracking down on password sharing, and it’s about time! The company has officially launched its new policy in the U.S., after previously turning a blind eye to the practice during its early growth phase. But now, with the launch of a cheaper, ad-supported subscription tier, Netflix is serious about limiting free password sharing. Bank of America analyst Jessica Reif Ehrlich predicts that this crackdown will be a huge boost for Netflix’s ad-supported tier, which already has 5 million monthly active users.
In an email to subscribers, Netflix emphasizes that an account is meant for the household only, and subscribers can purchase additional users for a fee. The company also tracks account usage and recommends that subscribers sign out of devices that shouldn’t have access and consider changing their password.
Co-CEO Ted Sarandos acknowledges that consumers may not love the new policy right away, but it’s necessary to show them the value of paid sharing. So, if you’re a Netflix subscriber, keep an eye out for the email notification about the new policy. It’s time to start sharing your account with only those in your household!
