Skip to main content

Netflix’s password sharing crackdown has created a ‘cancel reaction’

Netflix plans to crack down on password sharing in the U.S. in the coming months

Even as you may want to consume all the great movies that Netflix has to offer, the company continues to look for new ways to make its subscription service more profitable. One of the long-rumored changes the company is planning to make is to the rules around password sharing. For years, one family spread across four homes could share a single account without much cause for concern, but it those days will soon be behind us.

Netflix is planning to crack down on password sharing in additional countries, including the US. On their most recent earnings call, the company reported that they had delayed their plans to roll out a password-sharing subscription tier in the US, but they’ve already implemented the program in other countries. While it may seem obvious to some that this crackdown on password sharing will lead to some cancellations, it seems that that’s already baked into Netflix’s assessment of their plan.

Netflix is seeing a ‘cancel reaction’ to password crackdowns

Man and woman watching Netflix
Image used with permission by copyright holder

In the countries where they’ve implemented the password-sharing program, co-CEO Gregory Peters said that it functions very much like a price increase, and they have seen an initial “cancel reaction” as a result. “And then we build out of that, both in terms of membership and revenue as borrowers sign up for their own Netflix accounts, and existing members purchase that extra member facility for folks that they want to share it with,” Peters explained.

Peters also said that Netflix has more subscribers and more revenue coming out of Canada than it did prior to the implementation of this password-sharing crackdown, meaning that the program ultimately helps the company’s bottom line.

The co-CEO added that the US would be part of a rollout for password sharing that happens in the second quarter, along with a number of other countries around the world.

“That launch we’re doing in Q2 is a very broad launch,” he said on the call. “It includes the United States, includes many, many other countries. I mean, we reserve the right for some countries where we think there’s a different approach, but I would say the bulk of our countries. And certainly, when you think about it from a revenue perspective, the vast majority will be rolling out in Q2.”

Netflix’s ad-supported tier continues to perform well

Elsewhere on the call, Netflix said that the ad-supported tier they had introduced was continuing to increase subscribers, and that the new tier was tapping into a market of people who were not subscribing to the service before. “Engagement on our ads tier is above our initial expectations and, as expected, we’ve seen very little switching from our standard and premium plans,” the company explained.

Netflix’s latest earnings comes just weeks after it bungled its second-ever attempt at a live event with the Love Is Blind reunion special. The streamer clearly has a desire to move into this kind of entertainment, but producing live programming consistently seems to come with its own technical hurdles.

The company also recently announced that, after more than a decade, it would be closing down its DVD rental business completely in September of this year.

So if you were hoping that Netflix would change its mind on some of its recent and proposed changes, it looks like you’re out of luck.

Editors' Recommendations

Joe Allen
Contributor
Joe Allen is a freelance culture writer based in upstate New York. His work has been published in The Washington Post, The…
The 15 best Netflix original movies for you to watch right now
From Power of the Dog to Okja, these are the best movies that Netflix has produced since it first launched
Bo Burnham in Inside

When it became the first major streaming service, Netflix was best known for being host to a wide array of great movies and shows that had been produced by other studios. As it continued its rise to the top, though, Netflix also began to produce its own content, including some truly excellent Netflix original movies.
In fact, Netflix has produced a number of great movies over the course of its history as a studio and even financed some movies that might not have been made otherwise. This is not to say that everything Netflix has ever made has been great, but when they hit, they really hit.
We’ve handpicked a list of the best movie to stream right now on Netflix that the streamer made itself. You can also check out our list of the best Hulu series, best Amazon Prime series, and best Disney Plus series for more options.

Bird Box (2018)

Read more
The 14 best sci-fi movies on Netflix in 2023
These sci-fi movies are sure to make even the most skeptical viewer pay attention
Poster for The Mitchells vs The Machines

Have you ever found yourself looking through all the movies on Netflix, only to find that actually choosing one to watch is very taxing? That's not even mentioning all the Netflix shows to dig through. If you know you're looking for a particular kind of movie, that can help, but even then, there can be too many movies to choose from. Luckily, we've been watching tons of great sci-fi movies, and have already determined which ones rise to the top of the pile on Netflix. So if you're looking for the best sci-fi movies on Netflix this year, you've come to the right place.
If you're looking for something that will keep you occupied for a whole weekend, you can also check out our list of the best sci-fi series on Netflix right now.

65 (2023)

Read more
The 19 best true crime documentaries on Netflix right now
These true crime documentaries will keep you up at night
Netflix logo on TV with red backlighting

For the last 10 years, few things have been guaranteed to reel in more viewers than true crime documentaries. Netflix has been in on that wave of true crime fascination since the beginning, and in the years since, it has developed a vast library filled with revelatory documentaries on cases you may be familiar with, and a few you've never heard of before. Because Netflix has produced so many over the years, it can be hard to determine which are the best true crime documentaries.
We've got you covered with a rundown of the Netflix documentaries you definitely shouldn't skip. These are the documentaries most likely to keep you trapped on the couch all day, eager to start the next episode, or furiously searching the internet to find more information on which details are true. In short, these are the Netflix true crime documentaries that are most worth obsessing over.

If you're eager to find other types of content on Netflix, be sure to check out our lists of the best Netflix shows, and the best Netflix movies.

Read more