Netflix Viewers: Check Your Email. The Password Sharing Crackdown Has Begun.
Early last year, (NASDAQ: NFLX) revealed something that many investors already knew: password sharing was rampant on its platform. The company had previously encouraged account sharing as a way to drum up interest in its programming. What many didn't realize, however, was the extent of the phenomenon and how much it was costing Netflix.
In its 2022 first quarter shareholder letter, management estimated that over 100 million households were sharing their Netflix account, with over 30 million in North America alone. As a result, the streaming pioneer said this "means it's harder to grow membership in many markets." At the time, Netflix said it was working on "how best to monetize sharing -- the 100 million+ households using another household's account."
Looks like the company has finally settled on a plan. Viewers sharing their password should watch their email, as notices will begin going out beginning immediately.
Source Fool.com
Netflix Inc. Stock
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