Netflix is finally rolling out its password restriction on US accounts, the Hollywood Reporter reports. As one of the original streaming platforms, Netflix’s popularity is ubiquitous in the United States, practically becoming a synonym with streaming videos. It is also the service from which “password sharing” emerged, the practice of sharing a login to a paid service with friends and family to split costs.
To fix this loss of revenue, Netflix will now ask account owners to set one location from which they can stream normally, with other recurring locations blocked. Netflix has promised exceptions for travel, but it is unclear how closely it will enforce these. As a way to meet users halfway, Netflix will offer add-on logins for $7.99 only with its higher tier plans. There is no word on if other companies will follow suit.
Netflix’s stock began to drop by the end of 2021 following the gradual reopening of the country after COVID. Netflix’s high prices, especially compared to new contenders such as Paramount+, Apple+, and Peacock, made it even more unappealing to subscribe which resulted in further “password sharing.” In a dramatic turn around, Netflix introduced a cheaper ad-supported plan, is phasing out its long standing DVD-mailing operation, and now cracking down on account sharing. In turn, Netflix’s stock has been steadily rising over the past 12 months, showing that even long established companies can still adapt to the changes in media consumption.
