netflix plans to ban users from sharing passwords for free by the end of March this year, according to a recent company announcement in a letter to shareholders.
Back in October, the streaming giant It said it would start charging subscribers who share their accounts, but did not give a specific date or information on when the new policy would be enacted.
In a fourth-quarter earnings report released late last week, Netflix revealed that it would roll out the shared payment system across the platform in the latter part of the first quarter.
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“So we’ve been hard at work creating additional new features that enhance the Netflix experience, including the ability for members to check which devices are using their account and transfer a profile to a new account.”
The company noted that the new policy would likely lead to “short-term engagement” being “negatively impacted” as some users stop consuming content on the platform due to the loss of a free account.
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However, Netflix insured shareholders that despite the new changes, engagement will grow “over time as we continue to provide great programming and borrowers sign up for their own accounts.”
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