Canada, New Zealand, Portugal, and Spain are the additional four nations where Netflix is imposing restrictions on password sharing.
If customers in certain nations want to share their subscription with friends and relatives who don’t reside with them, they must pay an additional cost.
The measure, which will take effect in the UK by the end of March, comes in response to a crackdown on password sharing in South America.
According to Netflix, 100 million people worldwide use shared accounts.
Netflix Getting Revenue Loss Due to Password Sharing
Netflix’s capacity to invest in new television content was being hampered by the loss of revenue from the shared accounts, the company claimed.
It has stated that it intends to expand the new strategy to more nations in the upcoming months.
“Over the last year, we’ve been exploring different approaches to address this issue in Latin America, and we’re now ready to roll them out more broadly in the coming months, starting today in Canada, New Zealand, Portugal and Spain,” it said in a blog post on Wednesday.
It has previously been simple for subscribers to give their login information and password to pals who live outside of their home.
When it tweeted “Love is sharing a password” in 2017, Netflix even gave the impression that it was endorsing the behaviour.
However, increasing consumer subscription cancellations due to rising living expenses and increased competition in the streaming industry have forced Netflix to concentrate on increasing its revenue.
The company claimed that permitting accounts to be used by multiple people in a single household had “created confusion” regarding who could share what and how.
Members in Canada, New Zealand, Spain, and Portugal, according to the announcement, will now be required to establish a “primary location” for their accounts and control who has access to them.
According to the statement, subscribers could still access Netflix when travelling on their own devices and by checking in from different locations, such as a hotel.
Canadian members can add an additional member as a “sub account” for CAD $7.99 (£4.92), according to the blog.
In New Zealand, the cost would be NZ $7.99 (£4.17). Spain would cost €5.99 (£5.32) and Portugal would cost €3.99 (£3.54) for sub accounts, respectively.
Gregory Peters, Netflix’s COO, acknowledged last month that the adjustments would not be “universally popular” and forewarned investors to anticipate some cancellations.
He claimed that the business anticipated eventually recovering such losses.
Netflix witnessed a dramatic decline in their subscriber base throughout the first half of 2022. To offset rising costs, it slashed hundreds of employees and raised prices.
However, the business experienced a greater-than-anticipated increase in user numbers in the final three months of 2022, up 7.66 million, bringing its total nu
mber of paying customers globally to about 231 million.
It launched a less expensive ad-supported alternative in 12 nations in November, including the majority of Europe, the UK, and the US.
To read our blog on “You can now delete unwanted users from your Netflix account,” click here.
