Executives at Netflix will start cracking down on password sharing among its customers in the United States by July 1, broadening a rollout of its anti-freeloading policy that has been implemented in some other countries.
The affirmation was made on a quarterly earnings call held this week, during which some executives said the company planned to implement its password-sharing crackdown strategy in the United States by the end of its second financial quarter.
Few details have been offered on how Netflix intends to crack down on password sharing domestically. The company has 74.4 million paid accounts in the United States and Canada, with customers shelling out at least $8 a month for access to Netflix’s library of TV shows, movies, documentaries and stand-up comedy.
Netflix recently began tightening the belt on freeloading streamers in some Latin American countries, offering subscribers a way to pay more to share their accounts with people who live outside their immediate household. The move was partially blamed for a drop in Netflix subscribers in affected countries, where 450,000 ditched their paid memberships during its first financial quarter of 2023.
This week, Netflix executives warned investors that the crackdown on password sharing would likely lead to a short-term loss of revenue, but said the plan was worth it over the long haul as it expects some freeloading streamers to convert to take up its lower-cost, ad-supported option or one of its premium streaming plans.
Netflix is also winding down its iconic DVD-by-mail rental business, which was the cornerstone of the company when it launched, officials confirmed on Tuesday. The company will mail its last DVD in late September.