Netflix Cracking Down On Password Sharing In These 4 Countries

Netflix Inc NFLX said Wednesday that its password-sharing restrictions will be imposed on users in Canada, New Zealand, Portugal, and Spain.

What Happened: The company said that users in the four countries will have to set a “primary location” for their account so that members of the household can access their Netflix account.

Netflix said that its members will still be able to watch Netflix on their personal devices or log into a new TV at a hotel or a holiday rental when they travel.

In a statement, the company said that its Standard and Premium members in the four countries and other geographies can add an extra sub-account for up to two people they don’t live with for an extra CAD $7.99 per month in Canada, NZD $7.99 in New Zealand and EUR 3.99 in Portugal and EUR 5.99 in Spain.

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Why It Matters: “Today, over 100 million households are sharing accounts — impacting our ability to invest in great new TV and films,” said Netflix’s Director of Product Innovation Chengyi Long.

The company’s previous announcement on a password-sharing crackdown led to uproar. It had been testing the feature in Chile, Costa Rica, and Peru.

Last month, Netflix said in its earnings report that it planned to enforce the measure “more broadly.”

Price Action: On Wednesday, Netflix shares closed 1.1% higher at $366.83 in the regular session and rose 0.7% in the after-hours trading, according to Benzinga Pro data.

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