The days of password sharing on Netflix is coming to an end soon, and people who share password outside of a household will soon have to pay to continue streaming. Last October, the company shared it would start a crackdown on password-sharing in 2023. In its latest earnings report, the company said it expects to begin paid sharing “more broadly” in the first quarter of 2023.
Netflix has been preparing for the crackdown with the features it’s put out recently. Last year, the company added a feature that lets account owners manage access and devices connected to their accounts. It is also now possible to move a profile to a new account.
Netflix says it expects to see a “cancel reaction” once paid sharing is rolled out but expects to see revenue improve overall once account borrowers begin to create their standalone accounts. In 2022, the company shared it finished with 231M paid subscribers and made $32B in revenue. Content released in Q4 was successful for the streamer. Glass Onion: A Knives Out Mystery is now the company’s fourth most popular film of all time, Troll its most popular non-English movie, while Wednesday is now its second most popular series ever.
In related news, the company announced that Reed Hastings is stepping down as CEO after 25 years and will now be an executive chairman. Ted Sarandos and Greg Peters will take over from Hastings as Co-CEOs.