Netflix to brave users loss amid password sharing crackdown

Netflix has decided to tightened the noose around password sharing this year and expected the move might trigger some dip in the growing subscriber base.

According to MoneyControl, the streaming giant is set to introduce paid password sharing "more broadly" in Q1 2023.

Previously, the company was mulling various ways to crack down on password sharing.

Netflix also tried the initiative in selected countries and expected this launch to hit its member growth in the limited term but will result in "improved overall revenue."

"From our experience in Latin America, we expect some cancel reaction in each market when we roll out paid sharing, which impacts near-term member growth.

But as borrower households begin to activate their own standalone accounts and extra member accounts are added, we expect to see improved overall revenue, which is our goal with all plan and pricing changes," Netflix said in its shareholder letter.

The paid sharing feature will allow members to pay additional charges if they want to share their Netflix account with people they don't live with.

Meanwhile, 2022 turned out to be a success story for Netflix, which added 7.66 million members during the quarter that climbed its worldwide subscribers to 230.75 million.