Netflix Account and Password Sharing Restrictions Goes Live in India Starting Today

Main Image
  • Like
  • Comment
  • Share

Netflix has announced a targeted effort to address account-sharing practices in India, Indonesia, Croatia, and Kenya, commencing on July 20, 2023. The company aims to bolster its revenue growth in the latter part of 2023 through this initiative.

To tackle the account sharing issue, Netflix is adopting distinct approaches in India and other countries where its paid sharing feature has not been implemented yet. This feature allows users to pay an additional fee to share their Netflix account with non-residential individuals. However, in markets where the paid sharing option is unavailable, Netflix has decided against introducing an “extra member” option. This decision is attributed to recent price reductions in these regions and the relatively lower penetration of the service, allowing the company to focus on its existing strategy without introducing further complexities.

Notably, Netflix had previously decreased its service prices in India by 20-60 percent in December 2021, leading to a notable increase in engagement, a 30 percent year-on-year growth, and a rise in revenue growth from 19 percent in 2021 to 24 percent in 2022, as reported in April 2023.

In light of the password-sharing crackdown, Netflix has witnessed positive outcomes across most of its markets. In May, the company expanded the paid sharing feature to more than 100 countries, accounting for over 80 percent of their revenue. Netflix highlighted that revenue and paid memberships in these regions have surpassed previous levels since the paid sharing launch, with new member registrations surpassing cancellations.

Consequently, in the second quarter of 2023, Netflix added 5.9 million paid members, a significant improvement compared to the nearly one million members lost in the same quarter the previous year. The company’s total subscriber base reached 238.4 million subscribers for that quarter.

Despite the relatively muted impact on revenues during the second quarter of 2023, Netflix remains optimistic about the “early stages of monetization,” and they expect to realize the full benefits of paid sharing in the later part of the year, particularly in the fourth quarter.

During a post-earnings interview in April, Netflix’s Chief Financial Officer, Spencer Neumann, emphasized that a substantial portion of the company’s revenue growth for the year would come from an increase in volume through new paid memberships, primarily driven by the paid sharing rollout.

The company also disclosed that its ad-tier subscribers have nearly doubled since the first quarter. However, due to the small membership base, the current ad revenue remains inconsequential for Netflix. Nonetheless, Netflix expressed confidence in developing its advertising business into a substantial incremental revenue stream, aiming for a multi-billion-dollar impact over time, despite acknowledging the challenges involved in building an ads business from scratch.

Aryan VyasAryan Vyas
Aryan is the youngest tech enthusiast at Smartprix, with a deep passion for technology, automobiles, cricket, and Bollywood. He is a meticulous researcher and writer who write on a wide range of tech topics, including smartphones, laptops, wearables, and smart home device.

Related Articles

ImageXiaomi 15 and 15 Pro Complete Specifications Leaked

After a series of leaks from the Xiaomi 15 and the Xiaomi 15 Pro, we now have a look at the complete specs of the Xiaomi 15 and the Xiaomi 15 Pro (also a leak). These devices will be launching by the end of this year in China and by early 2025 in India. The …

ImageHow to setup Netflix Profile Lock Using New PIN Code Feature

Do you have a shared Netflix account with your friends or family and don’t want your friends, roommates or siblings messing up your Netflix recommendations? Well, the latest Netflix update fixes that for you. Netflix recently rolled out parental controls where parents are allowed to decide the content that is safe for their children. Now, …

ImageNetflix will not let you share passwords starting from 2023

Netflix has been tryign to change a lot of things to maintain their revenue streams without any ressitance in India. One such thing which the OTT application wanted to do from a long time was keep a check and control the password sharing. A report by The Wall Street Journal, Netflix has been working on …

ImageDisney+ Hotstar Takes Cue from Netflix, Plans to Curb Password Sharing in India

In India, following Netflix’s lead, another major streaming giant, Disney+ Hotstar, is implementing measures to address password sharing among its premium users. According to reports, the company intends to enforce a new policy that will restrict premium account holders from logging in from a maximum of four devices. This step is aimed at curbing password …

ImageHonor 200 5G Series confirmed to launch in India soon: Amazon Page Goes Live

Honor made its comeback to the Indian market with the launch of Honor 90 5G in September 2023. After that, Honor launched the X9B device in February this year. Now, the brand has confirmed its next major launch which will take place in July 2024 (in India). Honor 200 5G Series will soon be announced …


Be the first to leave a comment.