The global streaming giant Netflix has taken a firm stance against password sharing in India. The company has begun sending emails to its customers nationwide, emphasising that Netflix accounts should be used exclusively within a single household.

Netflix plans to extend its password-sharing crackdown to other markets such as Indonesia, Croatia, and Kenya starting July 20, 2023.

According to Netflix’s official statement, a Netflix account is intended for use by one household, allowing everyone living in that household to access Netflix from home, on the go, or even during holidays. 

The move to crack down on password sharing comes as Netflix faces stiff competition and aims to provide its members with diverse content. The streaming service has introduced new features such as Transfer Profile and Manage Access and Devices to enhance the user experience.

Earlier this year, Netflix implemented similar password-sharing restrictions in more than 100 countries, including major markets like the United States, Britain, France, Germany, Australia, Singapore, Mexico, and Brazil. 

The platform also offered the option to add members from outside the household, subject to an extra monthly fee, to ensure a smooth experience for paying customers.

However, since recent price cuts and lower penetration, Netflix will not offer the ‘extra member’ option in India and other countries, which provides the company with sufficient room for growth without additional complexity.

The price reductions in India, implemented in December 2021, have proven beneficial for Netflix, resulting in increased engagement and revenue growth. Although the move to end password sharing may have a limited impact on revenue in the short term, Netflix expects to see significant benefits from the paid sharing rollout later in the year, particularly in Q4 2023.

Netflix’s overall revenue and paid memberships have shown positive trends following the crackdown on password sharing. With new member sign-ups exceeding cancellations, the platform added 5.9 million paid members in the second quarter of 2023, further expanding its subscriber base, which reached 238.4 million subscribers for the quarter.