Netflix users in the US that are sharing their passwords with friends and family will soon find the proposition much more challenging.
Netflix once encouraged users to share their passwords as a way of spurring adoption. As the company has faced growing competition, however, it has begun cracking down on the practice in an effort to convert freeloaders into paying customers. Until now, most of those efforts have been restricted to non-US countries.
According to Mashable, customers in the US will now be subject to the Netflix’s crackdown, based on comments made at the company’s earnings report. In its report, the company said it was “pleased with the results” of its efforts and plans on a “broad rollout” in the upcoming quarter, including to the US.
“Paid sharing is another important initiative as widespread account sharing (100M+ households) undermines our ability to invest in and improve Netflix for our paying members, as well as build our business,” Netflix’s report read.
Netflix was realistic about the likelihood of some users canceling their accounts in response to the action but noted that many end up re-subscribing.
“For example, in Canada, which we believe is a reliable predictor for the U.S., our paid membership base is now larger than prior to the launch of paid sharing and revenue growth has accelerated and is now growing faster than in the U.S.,” the report continued.
The writing has been on the wall for some time, but now Netflix is making it perfectly clear: The days of password sharing are numbered.