There was a dedicated reason why Netflix had decided to block its password sharing abilities. After months of its application, seems like it has had its intended effect. The online streaming site had prevented the users from sharing passwords with people outside their homes, with an intension to increase its subscriber base. As a result, the service now has noticed a spike in its subscriber base and seems to be the highest in four years.
It was found through a third party tracker that Netflix managed to grab more subscribers in the four days after the online streaming site had started its password-sharing crackdown in the United States. The figures obtained are surely positive news for the company while convincing them that it was the right decision to make. This might also force other OTT companies to take similar decisions. Before the new policy was introduced by the company about one third of the subscribers in the United States had shared their passwords with people outside their homes.
But then on May 23, 2023 the company announced that people who are sharing their passwords outside of their households will have to shed a fee to continue watching Netflix. The company tracks the main household account with the help of the device IDs and IP addresses. Now adding a user who does not share the account holder’s IP address will have to pay $7.99 per month in the United States and £4.99 in the United Kingdom. The company has added more conditions like the users will now have to log in from their homes once a month. If the subscriber is travelling , then the company suggests that they log in from their home immediately before they leave. Also there is no way to continue watching Netflix after being away from home for more than 31 days.
Talking about the subscriber spike, Netflix noticed 73,000 new daily subscriptions in the United States between May 25 to May 28, 2023.
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