Shulou(Shulou.com)12/24 Report--

CTOnews.com, December 5 (Xinhua)-- at today's UBS Global Media and Communications Conference, Netflix Co-CEO Ted Sarandos said Netflix was "fully satisfied" with the progress of the password sharing crackdown that began in the United States earlier this year.

CTOnews.com noted that Netflix first cracked down on password sharing in several Latin American countries in 2022, requiring users who want to share subscriptions with people other than immediate family members to pay extra. In February 2023, the operation was extended to Canada, New Zealand and some European countries, and then to the United States, the United Kingdom and other countries in May 2023. The phased action gives Netflix time to assess user responses. "it's good to take your time," Sarandos said at today's event. "that's why we didn't do it overnight."

Netflix has allowed password sharing for more than a decade and made the change because in the first quarter of 2022, Netflix subscribers declined for the first time in a decade, and revenue fell sharply. In order to increase revenue, Netflix decided to crack down on password sharing, raise subscription prices, and launched a package that supports advertising.

According to Netflix, an estimated 222 million paying households share accounts with another 100m unpaid households.

Following the crackdown on password sharing, Netflix says there has been a strong growth in the number of subscribers in countries that restrict password sharing. In the second quarter of 2023, Netflix added 6 million subscribers, including more than 1 million in the United States and Canada. Revenue has increased in each region where paid sharing has been introduced, and the number of new subscribers eventually outnumbered those who unsubscribed. Netflix added 8.8 million subscribers in the third quarter of 2023, up from 2.4 million in the third quarter of 2022, and revenue increased by $64 million.

Now Netflix subscribers can only share accounts with people in the same family, and Netflix restricts access based on IP and other location data. "the Netflix account is shared by people living in the same family, and people who are not in your family need to use their own account to watch Netflix," according to the Netflix website.

In addition to canceling password sharing, Netflix raised the price of subscriptions in the United States in October. The basic ad-free package now costs $11.99 a month (an increase of $2), while the premium package is $22.99 a month (an increase of $3). Netflix did not change the price of its $6.99 advertising package and its standard package of $15.49 a month.

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