The crackdown on password sharing by Netflix (NFLX) has been expanded to include Canada, New Zealand, Portugal, and Spain.
Following the implementation of similar regulations in Latin America last year, users in these nations will now have to pay to grant access to their accounts to those with whom they do not reside.
The new regulations allow Netflix Standard or Premium subscribers to pay extra for up to two non-family members to use their account. The price to add a new person will be $7.99 Canadian dollars ($5.96), $7.99 New Zealand dollars ($5.09), and in Portugal and Spain, respectively, €3.99 ($4.30) and €5.99 ($6.45).
In Chile, Costa Rica, Peru, Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras, Netflix began implementing the adjustment last year. In a letter to shareholders sent earlier this month, it stated that it planned to implement the new guidelines “more generally” before March.
The massive streaming service, which last year saw significant member losses, claimed in a blog post published on Wednesday that password sharing impacted its revenue and consequently constrained its capacity to invest in new content.
More than 100 million households are thought to share accounts globally.
The statement from Netflix stated, “Over the past year, we’ve been investigating various strategies to address this issue in Latin America, and we’re ready to roll them out more extensively in the coming months, beginning today in Canada, New Zealand, Portugal, and Spain.”
Users were “confused” about “when and how” they may share their credentials, according to the business, which has long ignored password sharing.
To ensure that everyone in a family watches from the same account, users in the four countries will now be prompted to select a “main location.” Members will be able to more easily govern who has access thanks to a new “manage access and devices” page.
Users will still be able to log into their accounts using new TVs when traveling, tablets, or phones, according to Netflix.
Based on its experience in Latin America, Netflix predicted that a portion of customers would terminate their memberships once the changes went into effect, but that the aggregate number of users would increase over time. This was stated in a letter to shareholders.
Due to worries about streaming subscription fatigue and growing competition from the likes of Disney (DIS) and Apple, Netflix shares fell more than 50% last year (AAPL).
But the declining value of the US dollar has helped the stock increase by 24% since the year’s beginning. Netflix’s overseas sales and earnings increase anytime the dollar’s value declines because, as of 2022, more than half of its revenue came from sources outside the United States.