OTT giant, Netflix, plans to enforce password-sharing rules 'more broadly' by end of the first quarter of 2023, reported The Verge. The company announced this in its earnings on January 20.
Netflix wrote, "While our terms of use limit the use of Netflix to a household, we recognize this is a change for members who share their account more broadly". The streaming giant further said, "As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don't live with."
The company also announced that Netflix Inc co-founder Reed Hastings is stepping down as chief executive, handing 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 would end for everyone in a phased manner. 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 is charging $3 (Rs 250 approx) to people who wish to use their friend's Netflix account.
The company said that it expects some "cancel reaction" in each 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 come into force sometime in April.
The streaming giant has not revealed how much will it charge users in India.
The company plans to enforce the new password-sharing rule through IP addresses, device IDs, and account activity. This way, the OTT giant will be able to track the users.
US streaming giant Netflix ended last year with more than 230 million global subscribers, it said Thursday, beating analysts' expectations as hits such as "Wednesday" and "Harry & Meghan" enticed new viewers, AFP report said.
"2022 was a tough year, with a bumpy start but a brighter finish," the company said in a letter announcing bumper fourth-quarter earnings.
