Netflix Rolls Out Password Sharing Crackdown in the US

Netflix password sharing may be over. Netflix now charges $7.99 per month for non-household customers. The US will join Canada, New Zealand, Portugal, and Spain in banning illegal password sharing. Netflix told U.S. users, "Your Netflix account is for you and the people you live with—your household."

Netflix will restrict devices based on location services if you don't pay the $7.99 monthly price. Netflix subscribers can still access Netflix while traveling or at hotels.

Profit-Maximizing Strategy Netflix announced its password-sharing crackdown earlier this year. The streaming service later reversed such plans, but they appear to be on pace to end a practice they formerly encouraged. This move may assist or hurt the company. 

The crackdown may drive subscribers away, even though it's a profit-driven move. Variety reports that Canada's subscriptions have increased rather than decreased after the policy change. However, patterns over one financial quarter are not conclusive.

"That approach will grow membership," Netflix CEO Greg Peters stated. It will boost income." The Writers Guild of America strike has stalled production of Netflix hits like Stranger Things, so only time will tell if this method works. Netflix's continuous labor disputes with its creative personnel have led to the walkout, which has halted many high-profile projects.