Netflix Expects Subscriber Losses Amid Password Crackdown

Paid sharing will roll out in the U.S. in the second quarter

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The era of sharing a Netflix password is finally over.

The world’s biggest streaming service is serious about cracking down on the 100 million users it says are watching content but not subscribing.

Though Netflix initially promised a first-quarter launch for its paid sharing offering in the U.S., the company said in an earnings report today that the plan would officially roll out in the second quarter.

And it knows that subscribers won’t be happy about it.

“We see a cancel reaction in each market when we announce the news, which impacts near-term member growth,” the company said in an earnings release, adding, “But as borrowers start to activate their own accounts and existing members add ‘extra member’ accounts, we see increased acquisition and revenue.”

Because of the delayed rollout of its paid sharing plan, the company acknowledges that some of the expected membership growth and revenue...



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