Netflix May Stop Sharing Passwords In 2023. Here’s Why.

(CTN News) – Most of us have enjoyed watching interesting shows on Netflix and have never had a personal account because of Netflix’s password sharing feature.

According to some rumors, Netflix is planning to end its password sharing privilege completely in the near future. In spite of this, the streaming service appears to be hesitant to take action for fear of alienating its subscribers.

The move is expected to take place in 2023, and they are taking this decision in response to the decline in subscribers. Netflix will require a fee for those who wish to access the service.

The company estimates that over 100 million subscribers use passwords borrowed from friends and family to watch shows and movies on the streaming service app or website.

It is anticipated that this arrangement will be terminated in 2023. It is possible that the United States will be used as a testing ground for the decision.

Netflix has begun testing its feature of additional fees for password sharing in several Latin American countries, and they are charging around $3 per account. In accordance with this arrangement.

In these countries, the account holder will have to provide a verification code to anyone outside the household who wants to access the account.

According to the plans, Netflix may charge account sharers a fee that’s slightly lower than the $6.99 ad-supported plan, so that they can sign up for their own subscriptions rather than sharing a friend’s or family member’s account. To ensure that people are not sharing passwords,

Netflix will monitor IP addresses, device IDs, and account activity.

It has been known for some time that Netflix’s password sharing feature is the cause of their low profits. However, they have been hesitating to implement the change because it would cause their customers to become angry.

The company ignored the problem after the pandemic struck, which resulted in a significant increase in subscribers in 2020.

Netflix reported in its Q1 2022 earnings report that it lost 200,000 subscribers as a result of fierce competition and the war in Ukraine.

One of the reasons they suspended service in Russia was the loss of 700,000 subscribers. There was an even greater loss of subscribers in the second quarter, as the company lost nearly one million subscribers, the largest loss in the company’s history.

The stock price of fell 26% following the release of the report, wiping out about $40 billion in market value.

Although the company reported an increase of 2.41 million global subscribers during the third quarter of 2022.

Netflix CEO Spencer Neumann stated during the company’s earnings call that the company is not growing as fast as it would like, leading to the decision to eliminate password sharing.

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