The ALL OUT: AJ RAVALtime we have all been dreading has finally come: Netflix is cracking down on password sharing in the U.S.
Netflix launched paid sharing in four countries — Canada, New Zealand, Spain and Portugal — earlier this year and said in its quarter one earnings reportthat it is "pleased with the results" and plans a "broad rollout," including in the U.S., this upcoming quarter.
SEE ALSO: After 25 years, Netflix will finally stop shipping DVDs to people"Paid sharing is another important initiative as widespread account sharing (100M+ households) undermines our ability to invest in and improve Netflix for our paying members, as well as build our business," Netflix's report read.
It noted that the streaming service expects a "cancel reaction" from users when it announces the news, but that users tend to reactivate their accounts.
"For example, in Canada, which we believe is a reliable predictor for the U.S., our paid membership base is now larger than prior to the launch of paid sharing and revenue growth has accelerated and is now growing faster than in the U.S.," the report read.
Netflix originally planned to start eliminating password sharing in the U.S. earlier in the year, but decided to put a hold on the plan as they "found opportunities to improve the experience for members."
Users will be able to add two additional people to their Netflix Standard or Premium plan, but they'll have to pay extra — probably around $6 per person, if the U.S. decision matches the Canadian change.
It's time to reconnect with whoever's Netflix account you're mooching off of — but if we find a way around the newest crackdown, we'll let you know.
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