There are certain universal truths, unshakeable laws of existence. The sun will rise in the morning, chickens will lay eggs, and Netflix accounts are used by more than one person.

It was all fun and games while the streaming market was on a rocket like growth trajectory to the stars. Now that the tide is turning, and screws are tightening, Netflix aren’t laughing quite so much anymore.

Netflix

The market is competitive and saturated. Anyone wanting a full suite of streamers is now looking at a monthly cost about the same as for the premiere cable service they thought they had replaced. Combined with stagnant wages and rampant inflation, and we are getting much more choosy who we subscribe to. Wall Street analysts know this, and their focus on subscriber growth has ended. Now they are all about profitability.

Several Central American and South American countries have been used as test markets on limiting multi-household use of a single subscription. Now they are going to roll this out globally.

In a quarterly letter to investors the streamer said:

“Today’s widespread account sharing (100M+ households) undermines our long-term ability to invest in and improve Netflix, as well as build our business. While our terms of use limit use of Netflix to a household, we recognize this is a change for members who share their account more broadly.”

The technology will limit any Netflix account to users within one single household. Account holders will be charged an extra fee to share with users outside their household. Somehow the tech still allows members to use their accounts while travelling, meaning leaving your Netflix account accidentally logged in on the smart TV in your hotel is still going to be a thing. They will also still be able to use mobile devices and tablets.

The rollout will be staggered across countries throughout this year and will launch with a new advertising supported tier as the company looks to significantly boost revenue.

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