Netflix (NFLX) has revealed the first details of its password sharing crackdown.
According to the streaming giant's help center, which updated its FAQ pages for countries currently in the midst of the crackdown (Chile, Costa Rica, and Peru), Netflix accounts will remain shareable but only within one household. (The U.S. may be next up in the first quarter.)
As a result, Netflix will require users to identify a "primary location" for all accounts that live within the same household. Users will need sign into the home wifi of the primary location at least once every 31 days to ensure their device is not blocked.
The company said it will use information such as IP addresses, device IDs, and account activity to determine whether a device signed into the account is connected to the primary location.
When someone signs into the account from a device that is not part of the primary location, or if the account is accessed persistently from another location, it will likely be blocked.
To bypass this, the main account holder will need to verify the device through a temporary code. Once verified, the traveling member can watch Netflix for seven consecutive days. It’s unclear if you can request multiple temporary codes following the seven-day period to avoid paying for an additional account.
Netflix warned in the its quarterly letter to shareholders it will be intensifying its push to combat password sharing.
"Later in Q1, we expect to start rolling out paid sharing more broadly. Today’s widespread account sharing (100M+ households) undermines our long term ability to invest in and improve Netflix, as well as build our business," the company said.
Coupled with a crackdown on password sharing, Netflix will also rely on its newly launched ad-supported tier to lift profitability, especially as competition within the streaming space escalates: "As always, our north stars remain pleasing our members and building even greater profitability over time."
According to The Information, Netflix told advertisers it saw a doubling of sign-ups for its ad tier in January versus December — a positive sign of subscriber momentum as the streamer looks to invigorate revenue.
Netflix reported net additions of 7.66 million in Q4, above company guidance of 4.5 million amid a slew of high-profile and record-breaking content releases, including "Glass Onion," "Troll," "All Quiet on the Western Front," "My Name is Vendetta," and "Wednesday."
The company also announced co-CEO and co-founder Reed Hastings would step down from his role leading the company, with COO Greg Peters will join current Netflix co-CEO Ted Sarandos in that role. Hastings will now serve as the company's executive chairman.
Netflix stock has been on a tear in recent weeks, up roughly 55% over the past six months with about a 20% gain so far in January, far outpacing the Nasdaq Composite's 3% dip.
Alexandra is a Senior Entertainment and Media Reporter at Yahoo Finance. Follow her on Twitter @alliecanal8193 and email her at alexandra.canal@yahoofinance.com
Click here for the latest trending stock tickers of the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and YouTube
Related Quotes
We knew this day was coming: Netflix wants you to stop sharing your account with friends and family, and would prefer that those users pay for their own account or not stream at all. You’ve probably heard about the company’s plans to crack down on this sharing, and even talk that it’ll charge per extra user. We now know how the company plans to roll out these changes in the US, and it’s a little different than expected.
Yahoo Finance’s Allie Canal joins the Live show to discuss the latest surrounding Netflix’s fight to end password sharing.
Amazon shares slide lower in the after-hours trading session despite following a Q4 revenue beat and earnings miss.
Yahoo Finance Live anchors break down how Alphabet stock is trading on the heels of earnings.
Yahoo Finance Live examines Hanesbrands shares following losing dividends and consumer pivots away from the innerwear staple.
JMP Securities, a Citizens Company, Equity Research Analyst Nick Jones sits down with Yahoo Finance Live to dissect Amazon's latest earnings report and unit sales in the greater tech environment.
Shares of apparel company Hanesbrands (NYSE: HBI) dropped like a rock on Thursday after the company provided lackluster financial guidance and announced some substantial pivots to management's priorities. As of 11:40 a.m. ET, Hanesbrands stock was down 23% — particularly painful, considering the market is soaring today. On one hand, fourth-quarter revenue of $1.47 billion beat guidance from Hanesbrands' management.
Have a question about working with your financial adviser or looking to hire a new one? Email picks@marketwatch.com.
Yahoo Finance's Ines Ferré breaks down Qualcomm earnings, which beat on the bottom line but missed on the top line.
Exxon Mobil ( NYSE:XOM ) Full Year 2022 Results Key Financial Results Revenue: US$402.2b (up 44% from FY 2021). Net…
Apple's iPhone sales fell short of analysts' expectations in Q1.
It came in one word on Jan, 31. Its author is Michael Burry, the founder of the hedge fund Scion Asset Management. Burry is known for his bet on the collapse of the U.S. housing market, which led to the 2008 financial crisis.
Leading iBuyer Opendoor (NASDAQ: OPEN) was having an excellent day on Thursday. As of 3 p.m. EST, the real estate disruptor's stock had risen by 14% for the day and has now more than tripled from its 52-week low in just over a month. There isn't any company-specific news driving the news higher, but there has been a surge in optimism for the real estate market in general.
Dividend stocks are a great way to mitigate downside risk, hedge against inflation, and generate reliable levels of passive income. Closed-end funds, real estate investment trusts (REITs), and some actively managed diversified holding companies are purpose-built to return an outsize portion of cash flows to shareholders via regular distributions. Arbor Realty Trust (NYSE: ABR) is a REIT with a current annualized yield of 10.75%.
Amazon reported its Q4 2022 earnings on Feb. 2.
At this time, I'll now turn the conference over to Hooper Stevens, senior vice president of investor relations and finance. Today, we will have prepared remarks from Jennifer Witz, our chief executive officer; and Sean Sullivan, our chief financial officer.
There's more evidence now favoring medical marijuana legalization. But medical marijuana is already legal in most states.
In this market, the last thing investors have been rewarding this earnings season is a bottom-line miss vs. expectations of any magnitude. Except if you are Meta.
The S&P 500 dipped by 19% in 2022, but stocks still don’t seem cheap to Charlie Munger, Warren Buffett’s billionaire partner at Berkshire Hathaway. “In my whole adult life, I have never hoarded cash, waiting for better conditions,” Munger said in an interview in late 2022. “I’ve just invested in the best thing I could find.” Yet he acknowledged that Berkshire Hathaway is sitting on billions of dollars in cash. The reason isn’t that Buffett and Munger think they can wait for stocks to get even ch
Wood’s team identifies 14 distinct technologies they believe will feed off each other.
Netflix reveals first details of password sharing crackdown – Yahoo Finance
