(USNewsMag.com) – For months, rumors have circulated about Netflix possibly cracking down on password sharing. The company recently posted terrible first-quarter subscriber losses. And now, the rumors about a crackdown on passwords has become a reality.
On Tuesday, April 19, Netflix announced it was going to start charging account holders who share their passwords with people outside of their household. According to The Sun, the fee is going to be around $2.70.
Netflix is already testing the program in Peru, Chile, and Costa Rica. During the company’s first-quarter earnings call, the streaming platform revealed it will be expanding the program to other countries as well and will continue to test the feature’s response over the next year.
Netflix is preparing to crack down on password sharing after losing 200,000 subscribers: https://t.co/AgJGnoHnpI pic.twitter.com/nHiE8qBFAw
— IGN (@IGN) April 19, 2022
The news about the crackdown came after Netflix revealed it had lost over 200,000 subscribers in the first three months of 2022. It was the first time in a decade the company has lost subscribers since its inception. Worse, it’s projecting 2 million more losses in the second quarter. They also said more than 100 million households are sharing their passwords around the globe. The company estimated 30 million of the password-sharing households were in the US and Canada.
Will Netflix’s plans impact the way you use the streaming platform?
Copyright 2022, USNewsMag.com
