Netflix’s long-awaited crackdown on password sharing is coming soon to the U.S., the streamer said on Tuesday.
\nNetflix originally planned to roll out \u201cpaid sharing\u201d in the States during the first quarter of 2023. However, Netflix now says it’ll start rolling out the change \u2014 an update designed to convert account-sharers into paying users \u2014 a little later, on or before June 30.
\nThis move is not limited to the U.S., either. \u201cWe are planning on a broad rollout, including in the US, in Q2,\u201d the streamer said in its first-quarter 2023 earnings report. Alongside this announcement, Netflix also bid farewell to its 25-year-old mail-order DVD business. RIP.
\nNetflix’s quest to boost revenues by curbing password sharing kicked off earlier this year in Canada, New Zealand, Portugal and Spain. In these countries, Netflix requires paying users to set a \u201cprimary location\u201d for their account. Going forward, if someone they don’t live with uses their account, Netflix alerts them to \u201cbuy an extra member.\u201d Netflix says it will allow up to two extra members per account, and its fee per extra user varies by country. For example, it’s an additional CAD $7.99 in Canada and \u20ac3.99 in Portugal.
\nSpeaking of revenue, Netflix fell short of analysts’ expectations for its first quarter of the year. The company said it brought in $8.16 billion during Q1 2023, while Wall Street anticipated a slightly higher figure \u2014 $8.18 billion. However, the firm reported higher-than-expected earnings of $2.88 per share in Q1; analysts had anticipated $2.86 per share.
\nEarlier in 2023, Netflix breezily summarized its paid-sharing update as a chance to clarify \u201cconfusion about when and how you can share Netflix,\u201d but make no mistake, this is a crackdown. On Tuesday, Netflix played a similar tune, telling investors that the change \u201cwill result in a better outcome for both our members and our business.\u201d
\n\u201cWe see a cancel reaction in each market when we announce the news, which impacts near-term member growth,\u201d Netflix said. \u201cBut as borrowers start to activate their own accounts and existing members add \u2018extra member’ accounts, we see increased acquisition and revenue.\u201d
\nNetflix ended regular trading with its stock price at $333.70 per share. After hours, the company’s individual share price slipped below $307, before rebounding to about $330 (as of 2:58 p.m. PT).<\/p>\n
Netflix kisses mail-order DVDs goodbye<\/p>\n