OTT giant Netflix plans to enforce password sharing rules “more broadly” by the end of the first quarter of 2023, The Verge reported. The company announced this in its earnings figures on January 20.
The company also announced that Netflix Inc. co-founder Reed Hastings is stepping down as chief executive, handing over the reins of the streaming service to his longtime partner and co-CEO, Ted Sarandos, and the company’s chief operating officer, Greg Peters. Mr. Hastings will serve as executive chairman.
Earlier, Mr Hastings had announced that the password sharing option for everyone would be phased out. According to reports, Netflix is already testing the end of password sharing in some Latin American countries, including Costa Rica, Chile, Peru, and more. In these countries, the streaming giant charges $3 (around Rs 250) to people who want to use their friend’s Netflix account.
The company said it expects a “cancellation response” in every market, but that the long-term benefits of people paying for additional accounts will result in “improved overall revenue,” the Verge reported.
Reports suggest that new password-sharing rules could go into effect sometime in April.
The streaming giant has not disclosed how much it will charge users in India.
The company plans to enforce the new password sharing rule over IP addresses, device IDs and account activity. In this way, the OTT giant can track the users.
US streaming giant Netflix finished last year with more than 230 million global subscribers, it said Thursday, beating analysts’ expectations as hits like “Wednesday” and “Harry & Meghan” attracted new viewers, the UKTN report said.
“2022 has been a tough year, with a bumpy start but a better finish,” the company said in a letter announcing fourth-quarter earnings.
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