Streaming giant Netflix announced on Thursday that it has ended password sharing in India and will now notify subscribers who share their accounts outside of their homes.
“Starting today, we will be sending an email to members who share Netflix outside of their household in India,” the company said in a statement.
“A Netflix account is for household use. Anyone living in this household can watch Netflix anywhere — at home, on the go, on vacation — and take advantage of new features like Transfer Profile and Manage Access and Devices.
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In May, the streaming giant rolled out paid sharing in over 100 countries, accounting for more than 80 percent of the company’s revenue base.
Netflix says sales in every region are now higher than pre-launch, with signups already exceeding cancellations.
The company also mentioned that paid net additions were 5.9 million in the second quarter (Q2) of this year.
Also, paid sharing is now rolling out in almost all remaining countries.
In its second quarter 2023 earnings report, the company said, “Second quarter 2023 revenue of $8.2 billion and operating income of $1.8 billion were broadly in line with our guidance – and we expect revenue growth to accelerate in the second half of 2023 as we begin to realize the full benefits of paid sharing and continued steady growth of our ad-supported plan.”
“We continue to target an operating margin of 18 to 20 percent for the full year 2023.”
The report also noted that the platform “is seeing a healthy conversion of households from borrowers to full-paying Netflix memberships, as well as usage of our additional members feature.”
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In addition, the streaming giant announced that it was “phasing out” the ad-free Basic plan for new and rejoining members in Canada in the second quarter (existing ad-free Basic plan members are unaffected). The same is now happening in the US and the UK.
“We believe our entry-level prices in these countries – $6.99 in the US, £4.99 in the UK and $5.99 in Canada – offer great value to consumers given the breadth and quality of our catalogue,” the company said.
“Most of our revenue growth this year is due to volume growth from new paid memberships, and that’s largely due to the launch of our paid sharing membership,” said Spencer Adam Neumann, Netflix chief financial officer.
