Netflix has been “fully glad” with the tempo of the password sharing crackdown it initiated in america earlier this 12 months, Netflix co-CEO Ted Sarandos mentioned as we speak at the united statesGlobal Media and Communications Convention (through Selection).

The streaming firm first started eliminating password sharing in in a number of international locations in Latin America in 2022, requiring those that wished to share subscriptions with individuals outdoors of their direct family to pay an extra charge. Password sharing restrictions then expanded to Canada, New Zealand, and a few European international locations in February 2023, earlier than coming to the U.S., UK, and different international locations in Could 2023. The tiered rollout gave Netflix time to evaluate buyer response. “It was good to take it gradual,” mentioned Sarandos at as we speak’s occasion. “That is why we did not do it in a single fell swoop.”

Netflix allowed password sharing to proliferate for greater than a decade earlier than deciding to crack down on it. The change got here as a result of within the first quarter of 2022, Netflix misplaced subscribers for the primary time in 10 years and noticed a pointy drop in income. To spice up income, Netflix put a cease to password sharing, raised costs, and launched an ad-supported tier.

In accordance with Netflix, an estimated 222 million paying households have been sharing with an extra 100 million households that weren’t being monetized.

Following the password sharing crackdown, Netflix mentioned that it noticed sturdy subscriber progress in international locations the place password sharing was restricted. Netflix in Q2 2023 added six million subscribers, together with greater than one million within the U.S. and Canada. Income elevated in each area the place paid sharing was rolled out, and signups in the end exceeded cancelations. Within the third quarter of 2023, Netflix gained 8.8 million new subscribers, up from 2.4 million new subscribers in Q3 2022, plus income elevated by $64 million.

Netflix subscribers are actually solely allowed to share accounts with individuals who reside in the identical family, with Netflix limiting entry based mostly on IP and different location information. “A Netflix account is supposed to be shared by individuals who reside collectively in a single family,” reads the Netflix web site. “People who find themselves not in your family might want to use their very own account to look at Netflix.”

Together with eradicating password sharing, Netflix in October raised its costs in america. The Primary no-ads plan is now priced at $11.99 per thirty days (a $2 enhance), whereas the Premium plan is $22.99 per thirty days (a $3 enhance). Netflix didn’t change the worth of its $6.99 ad-supported tier or its $15.49/month Normal plan.