Netflix to Expand its crackdown on Password Sharing to More Countries, Including the US, in Q2 2023

Netflix will be expanding its crackdown* on password sharing to more countries, including the United States (US), in the second quarter of 2023, according to the company’s financials for the first quarter of 2023 which ended on March 31, 2023. The company stopped short of detailing the list of countries in an earnings call but pointed out that the pricing of this programme is being evaluated on a “market-by-market” basis. Netflix did not say whether India was included in the list but clarified that it will not shy away from holding back the roll-out in countries where it followed a “different approach”. Moreover, the company’s co-CEO Gregory Peters added that the roll-out in countries such as Canada went “well” and the reaction was consistent with the company's trial in countries such as Chile and Peru. Peters added that the company faces pushback initially but it proceeds to build its base once the dust around cancellations settles down. The company’s chief financial officer, Spencer Neumann, also explained that the company was facing no incremental costs due to this programme. Why it matters: The announcement is an affirmation that Netflix is going ahead with its crackdown on password sharing in other countries as it looks to augment its revenue. It is likely to shake up the streaming sector as more companies will look to curb sharing of passwords if Netflix succeeds as users sharing passwords cost streaming platforms billions of dollars in lost revenue. It is not clear if the company is keen on rocking the…