Netflix Pulls The Plug On Password Sharing: The Details

Netflix Inc NFLX shares faced selling pressure Tuesday, but the stock bounced off of the lows in afternoon trading after the company provided an update on its password sharing crackdown.

What Happened: In an update posted on the company's blog, Netflix said it would send an email to customers who are sharing Netflix outside of their household in the United States. The email was shared in the post. 

"Your Netflix account is for you and the people you live with - your household," the company said in the email.

Netflix is rolling out new features to help members with the transition, including the ability to transfer a profile to a new membership account. Netflix users will also be able to add an extra member to their account for $7.99 a month. 

The company is recommending that all users check to see who is currently signed into their accounts and sign out any devices that shouldn't have access. 

Netflix originally planned to begin cracking down on password sharing in the first quarter, but on an earnings call last month, the company said it was delaying the push until the second quarter. 

At the time, Netflix noted that more than 100 million people were sharing accounts with people outside of their household. 

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NFLX Price Action: Netflix shares closed Tuesday down 1.93% at $355.99, according to Benzinga Pro.

Photo: yousafbhutta from Pixabay.