Streaming giant Netflix, Inc. (NFLX) had ignored password sharing for many years. However, the company expanded its crackdown on password sharing to 103 countries and territories, alerting users that their accounts cannot be shared for free outside their households. It also stated that an extra fee of $8 per month would be charged for shared passwords in the United States.
The streaming giant suffered a significant loss of subscribers and a short-term financial hit as a result of the password-sharing crackdown. However, the company remains confident that the paid-sharing plan is a sound long-term strategy. In the first quarter of 2023, NFLX added 1.75 million streaming subscribers, which fell short of the analyst estimate of 2.06 million additions.
