Netflix expresses satisfaction with the outcomes of its crackdown on password sharing – Read the company’s statement

Netflix co-CEO Ted Sarandos recently expressed satisfaction with the company’s progress in curbing password sharing in the United States. Speaking at a conference at UBS Global Media and Communications, Sarandos stated that the company is “absolutely satisfied” with the speed of the measures aimed at sharing passwords.

“We’re absolutely happy with the pace of it. It’s been very good to take it slow and deliberate, and we’re taking it very deliberately,” Sarandos said.

Netflix began cracking down on password sharing in the US earlier this year. Password sharing restrictions then expanded to Canada, New Zealand and some European countries in February 2023, before coming to the US, UK and other countries in May 2023.

The company has gradually implemented new measures to identify and prevent password sharing, such as requiring users to verify their account with a phone number or email address.

According to Reuters, Netflix allowed password sharing to become commonplace for more than a decade before deciding to crack down on it. The change was due to the fact that in the first quarter of 2022, Netflix lost subscribers for the first time in ten years and its revenue fell sharply.

To increase revenue, Netflix stopped sharing passwords, raised prices, and implemented ad tiering.

According to the streaming giant, an estimated 222 million paying households shared with an additional 100 million that were not commercialized.

“We’re very aware that people care a lot about Netflix,” Sarandos said. “We want to make sure we do this in a way that respects our customers and is effective in the long term.”

Netflix has not yet released information on how the sharing of its passwords has affected the company’s bottom line. However, Sarandos has said that he is confident that the measures will be successful in the long term.

“We think it’s the right thing to do,” Sarandos said. “It will help us build a stronger and more sustainable business in the long term.”