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Popular streaming platform Netflix has been gradually restricting password sharing for some time now. Netflix first began removing password sharing in several Latin American countries and required those who wanted to share their subscription with people outside their immediate household to pay an additional fee.

The password sharing restriction then expanded to Canada, New Zealand, and some European countries in February 2023, and came to the US, UK, and other countries in May 2023. The phased rollout gave Netflix time to assess customer reaction. “It was good to take it slow,” a Netflix representative said this week.

Netflix let password sharing run rampant for more than a decade before deciding to crack down on it. The change came as Netflix lost subscribers for the first time in a decade in the first quarter of 2022 and saw a sharp drop in revenue. To boost revenue, Netflix stopped password sharing, raised prices , and also launched a new ad-supported account tier.

Netflix estimates that 222 million paying households shared with another 100 million households that did not pay for Netflix due to password sharing. After restricting password sharing, Netflix said it saw strong subscriber growth in countries where password sharing was restricted. Netflix added six million subscribers in Q2 2023, with more than a million in the US and Canada. Revenue increased in every region where paid sharing was introduced, and sign-ups increased by XNUMX% in QXNUMX XNUMX.onec exceeded the number of cancellations.

Netflix added 8,8 million new subscribers in Q3 2023, up from 2,4 million in Q3 2022, and revenue increased by $64 million. Netflix subscribers can now only share accounts with people who live in the same household, with Netflix restricting access based on IP and other location data. “A Netflix account is designed to be shared by people who live together in the same household,” Netflix’s website states. “People who are not in your household will need to use their own account to watch Netflix. ” Along with the removal of password sharing, Netflix raised its prices in the United States in October.

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