Netflix has begun cracking down on password sharing in key markets such as the UK and the US as part of its efforts to boost subscribers. The streaming giant is notifying customers that if they want to share their account outside their homes, they must pay an additional £4.99 per month in the UK or $7.99 in the US. While Netflix aims to increase its revenue base and improve its service, some countries where similar measures were introduced experienced negative consequences. For example, in Spain, the introduction of a €5.99 fee for an additional account led to a loss of over a million subscribers in the first three months of the year.

Netflix has now sent emails to customers in 103 countries and territories, including Australia, Brazil, France, Germany, Mexico, and Singapore, regarding sharing accounts. The company recognizes that there may be cancellations initially but believes that paid sharing will contribute to long-term revenue growth.

As the streaming market becomes more competitive, with rivals such as Disney and Amazon launching their own services, Netflix aims to tap into the audience that currently shares passwords, estimated to be over 100 million households. The company’s subscriber growth has slowed, and it faces challenges in maintaining its dominance in the industry. Netflix has been experimenting with different strategies, including offering a cheaper streaming option with ads and reducing prices in several countries. The expansion of its paid sharing program is part of its overall approach to adapt to evolving market dynamics.

With 233 million subscribers globally, Netflix is navigating a complex landscape as it strives to retain and attract customers in the face of increasing competition.