Netflix has banned free account sharing worldwide, Tech News Space reports. Back in May, the streaming company began warning subscribers about a policy that aims to prevent multiple users from sharing the same account.
Netflix allows you to share your account, but only with people who live in the same household as the user. For example, you can create separate accounts for your kids and parents within the same account and install them on different TVs or computers, but only in the same house. To share an account with people who live elsewhere, you have to pay an extra $7.99 per user. However, this option is not available on Netflix’s cheapest plans. According to a report by analytics company Antenna, the company’s subscribers have started to increase due to Netflix’s stricter policies.
“This is not a one-off event. This is partly due to measures being implemented successively, partly because some users of third-party accounts do not register their own immediately. They’ll be doing it for the next few months, and maybe even longer if we bring something to market that they’re very interested in selling“, said Greg Peters, CEO at the company.
The company found that users of passwords from other people’s accounts who registered their own had the same characteristics as long-term customers, so the company could expect a high retention rate of new subscribers.
Netflix expects growth in paid subscribers in the third quarter to be similar to the second quarter. Revenue growth is projected to accelerate significantly in the fourth quarter as the company’s anti-password efforts gain momentum. Ad revenue growth will also contribute quite a bit of revenue.