New Delhi: After a limited launch of the limitation helped the company sign up over 6 million members in the quarter ending in June, Netflix has announced a password-sharing crackdown for users in India and every other region. Starting on July 20, 2023, the video streaming giant Netflix will begin clamping down on account sharing in India and other regions including Indonesia, Croatia, and Kenya to increase revenue growth in the coming months of 2023.
“Starting today, we will be sending this email to members who are sharing Netflix outside their household in India,” said Netflix officially.
Netflix to crack down on password sharing in India, other markets from today@tsuvik ✍️https://t.co/YSatGrKU7P
— ChristinMathewPhilip (@ChristinMP_) July 20, 2023
Netflix has reversed its position on password sharing after realising it would hurt the company’s bottom line. Netflix said in April 2023 that it had dropped subscription rates in India by 20-60% in December 2021, a move that had improved engagement in India by roughly 30% year over year and that revenue growth had climbed to 24% in 2022 from 19% in 2021. It is projected that over 100 million individuals will be able to access its material for free as a result of the adoption of a cheaper ad-supported streaming plan and the subsequent barring of the sharing of passwords.
Netflix has announced that profile information may be shared across new and existing accounts. The firm said that from today, it would begin emailing Indian subscribers who are sharing their Netflix account with anyone outside of their family.
It started testing the limitations last year, and in 2023 it was rolled out to further nations including Canada, New Zealand, Portugal, Spain, and the United States. In some of the regions, Netflix users who shared their passwords with friends were charged an additional fee.
On Wednesday, Netflix said that its recent crackdown on password-sharing had contributed to the company’s strong subscriber growth in the quarter ending in June. After losing roughly 1 million consumers over the same period last year, the business reported adding 5.9 million members during the most recent quarter. People are paying for their own accounts in larger numbers now that they can’t afford to share the service with their friends anymore. As of the end of June, Netflix has 238.4 million customers throughout the globe, and the business projects the same kind of growth for the months of July through September.
The company has made it clear that in countries where it is implementing new limitations on account-sharing, it will not be launching a new membership option for clients. The business said in a letter to shareholders that this decision was made due to the low market penetration in certain regions and the availability of cheaper Netflix membership levels.
