Netflix ends password sharing in India, only household members get access

OTT giant Netflix plans additional restrictions on password sharing and has announced that it has ended password sharing in India, a company statement revealed.

"Everyone living in that household can use Netflix wherever they are at home, on the go, on holiday and take advantage of new features like Transfer Profile and Manage Access and Devices," reads the Netflix statement.

The statement also reveals that the company has sent emails to customers who are at present sharing the passwords outside the respective household in India.

Move aimed at revenue boost

The decision also comes at a time when the company has been tracking global password sharing since May when it announced that the passwords cannot be shared beyond the immediate family. The move in May was aimed at boosting revenue for the company. 

It has imposed restrictions on password sharing in more than 100 countries, including popular markets like the United States, Britain, France, Germany, Australia, Singapore, Mexico and Brazil. 

Source: Netflix

Revenue came in slightly below analyst predictions for April through June, as did Netflix's projection for third-quarter revenue. The company said it expected revenue growth to accelerate in the second half of the year, Reuters reported.

"While we’ve made steady progress this year, we have more work to do to reaccelerate our growth," the company said in its quarterly letter to shareholders.

Future in the intense competition

The company has been looking for new ways to make money as streaming competition intensifies and it nears market saturation in the United States. The company launched a cheaper tier with advertising last November and started asking password borrowers to pay in a widespread crackdown that rolled out in May.

Meanwhile, Netflix tumbled 7 per cent in premarket trading on Thursday after its quarterly revenue and forecast fell short of estimates, with analysts saying it would take time for the company's new money-making ventures to bring in returns.

The company reported second-quarter revenue of $8.2 billion, shy of analysts' forecasts of $8.3 billion. Third-quarter revenue is estimated to hit $8.5 billion, falling short of estimates of $8.7 billion, Reuters cited.

At present, it has added nearly six million subscribers to its user base, beating the expectations of the 1.9 million that Wall Street had expected. The company's shares have gained more than 60 per cent so far this year and it expects revenue growth in the second half of 2023.

(With Reuters inputs)