United States Netflix, in a bid to boost revenue for its leading streaming TV service, on Tuesday took tougher measures against users who share passwords with a wider circle of people than immediate family members.
"The Netflix account is for one household use," the company said in a statement.
Earlier this year, Netflix said that more than 100 million households are sharing accounts, which "affects our ability to invest in great new TV and movies."
In several markets, Netflix has experimented with borrowed or shared accounts, where subscribers can add additional users at a higher cost or move viewing profiles to separate accounts.
On Tuesday, the company announced that more than 100 countries will apply the policy.
After Netflix's growth slowed last year, the Silicon Valley-based streaming giant decided to push people who watch for free with shared passwords to pay for the service without alienating subscribers.
"This account sharing initiative helps us have a larger base of potential paying members and grow Netflix over the long term," said co-chief executive officer Ted Sarandos on the earnings call.
The company recently told financial analysts that it has delayed broad restrictions on password sharing to improve what it says is the member experience.
Netflix said it has ensured that subscribers can use the service seamlessly when away from home or across devices such as tablets, TVs or smartphones.
"They're just trying to reduce the amount of theft of their services," said independent technology analyst Rob Enderle of the Enderle Group.
He said Netflix likely pays royalties when subscribers watch certain shows or movies on the platform, so non-paying viewers could increase the service's costs but not revenue.
"In theory, Netflix is losing money because they're paying royalties and people are getting shows for free," Enderle said. "There's no point in Netflix allowing this to continue."
Market research company Insider Intelligence predicts that this year, for the first time, adults JAV will spend more time watching digital video on platforms such as Netflix, TikTok and YouTube than watching traditional television.
Editor Daividas Kubikis
