Netflix begins its password sharing crackdown in the US and global markets

Image credit: Aaron P/Bauer Griffin/GC Images/Getty Images

After a delayed start, Netflix’s crackdown on password sharing is now beginning to roll out to subscribers in the US and other global markets. The company originally planned to introduce “paid sharing” to U.S. subscribers in the first quarter of this year, but pushed back the start date to the summer after cancellations occurred in markets where it had already started making changes. Under the new rules, U.S. subscribers will have to kick people out of their Netflix accounts or pay $7.99 a month for additional memberships for people outside the primary household.

Similar changes are expected to roll out to dozens of global markets in the coming weeks and months.

The company provides tools to make this transition easier, including a way to see which devices current subscribers are signed into their accounts on and remove devices they shouldn’t have access to, as well as tools to reset passwords. doing.

If you share someone else’s Netflix account, you can transfer it to your own account using the “Transfer Profile” option that helps you transfer your existing account information, such as your viewing history and watchlists.

While there was a lot of consumer backlash for the feature, Netflix told investors that, despite some early cancellations, password crackdowns would be beneficial to the company’s long-term growth and financial health. I assure you that I believe

For example, Netflix co-CEO Greg Peters said in its first-quarter results that password crackdown results in the first supported markets mirrored subscriber reactions to price increases. said.

“We see a cancellation reaction first, then after that, renters sign up for their Netflix accounts and existing members buy additional membership facilities for people they want to share, so from both a membership and revenue standpoint. We’re going to build on that from there,” Peters said. he told investors at an earnings conference in April. “Thus, first and foremost, it was a strong validation that we saw consistent results in these new countries, as they have different market characteristics from each other and from our original Latin American deployments.” he added.

Netflix first began testing the feature in the Latin American market before expanding access to Canada, New Zealand, Portugal and Spain earlier this year. Today’s launch marks the company’s entry into a wider global market, including Brazil, Bolivia, Belize, France, Germany, Iceland, Ireland, Italy, Philippines, Malaysia, Israel, Thailand, Taiwan, Switzerland, Sweden and more.

The company may have delayed its crackdown in the first quarter because it didn’t want to further affect its net increase. Last quarter, the company reported a net increase of 1.75 million global subscribers in the quarter, but it has since declined. under Wall Street estimates 3 million, reaching a total of 232.5 million accounts worldwide.

The company also said during its earnings call that it plans to roll out the password-sharing changes to U.S. subscribers on “or sooner” June 30. Apparently Netflix could have pushed the timing a little bit forward.

today on netflix announced The company announced on its blog that it is sending emails to members in the US who share a Netflix account.

“Netflix accounts are for single household use,” the company advises. “Everyone in the household can enjoy Netflix wherever they are, whether at home, on the go or on vacation, with new features like profile transfer and access and device management,” the post said. is written.

The email itself, titled “Sharing Update,” details the options available and simply points the member to further helpful documentation if needed.

Image credit: Netflix

In an email sent to news outlets, Netflix said the email was being sent “as we begin to roll out updates on sharing to countries around the world, including the United States.” .

Previous tests had shown Netflix could bounce back after the password crackdown, but the United States, its largest and most important market, faces increasing competition for users’ time and money. The results are yet to be seen.

The timing of this launch announcement is noteworthy as today, HBO Max turns into Max, a new service that combines HBO and Discovery+ content under one roof, nearly doubling the amount of programming available. To do. Next month, June 27th, Paramount+ will also add Showtime to its service. Disney, meanwhile, said it plans to merge Disney+ and Hulu into one app. Some changes may come with price increases, but give subscribers more content. Netflix, on the other hand, is asking viewers to pay more for the same amount of money.

Updated at 4:45 PM ET to add a long list of countries with crackdowns on password sharing.