Netflix Is Officially Charging for Account Sharing, and the Risky Move Could Affect the Stock

(NASDAQ: NFLX) has finally done it -- it's begun cracking down on password-sharing in the U.S. and the U.K. And while Wall Street has been anticipating the move for a while, the company has been opaque about exactly when it would clamp down, and what that enforcement would look like.

But now that the streamer has put its flag in the sand, some may question whether Netflix has made a savvy choice. Could it turn out to be a big mistake? Let's break it down.

After losing millions of subscribers in the first half of fiscal 2022, Netflix decided it was time to deal with the approximately 100 million viewers accessing its content via other people's login details (also known as "sub accounts"). The company explained that, while subscriber accounts can host multiple profiles, there has been "confusion" among its users, leading to wide-scale account-sharing between households.

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Source Fool.com