Canada, New Zealand, Portugal, and Spain have already seen their Netflix users become subject to the new paid sharing policy. The company has delayed the launch of this program in the US, citing the need to improve the user experience before a broad rollout.
Netflix’s new policy comes as part of its efforts to reduce password-sharing, a practice that costs the streaming giant millions of dollars each year. In its shareholder letter released Tuesday, Netflix reported a gain of 1.75 million subscribers for the January-March period, a stark contrast to the loss of 200,000 subscribers the company sustained at the same time last year.
Netflix’s crackdown on password-sharing follows the launch of a low-priced version of its service that includes commercials. The company’s decision to shut down its DVD-by-mail service, which had been in operation for 25 years, also reflects the shift towards streaming as the primary means of consuming media.
Despite these changes, Netflix remains one of the most popular streaming services in the world, with over 208 million subscribers globally. The company’s success has spurred competition in the industry, with rival services such as Disney+, Hulu, and Amazon Prime Video vying for a share of the market.
As the streaming landscape continues to evolve, it remains to be seen how Netflix’s new password-sharing policy will be received by its customers. Nonetheless, the company’s commitment to improving the user experience and reducing costs demonstrates its determination to remain a leader in the industry.
