Netflix starts crackdown on password sharing in UAE

Gulf Today, Staff Reporter

The American online entertainment platform Netflix has begun its password-sharing crackdown in more than 100 countries, including the UAE.

According to Netflix, people who don’t stay in the same house will be asked to sign up for their own account to enjoy the services.

This means that any user who is outside of the account holder's home will be notified by a pop-up message about the change when accessing Netflix.

However, users will not be kicked out without prior notice.

The popular streaming service said that an account is mean to be shared by people who live together in one household.

The number of subscribers to Netflix jumped to 6 million following the rollout of the restraint on password sharing.

Netflix said that the number of subscribers increased during the second quarter of this year by 6 million to reach more than 238 million subscribers.

Since last May, Netflix has taken strict measures against the participation of more than one user in the use of one account away from the user's actual residence in more than 100 countries, including the United States and Germany.

The platform relies on making users pay additional amounts for multiple users of the same account instead of cancelling the service for them.

At the same time, sales of the platform increased in all regions.

Netflix revenues increased during the second quarter, in general, by 2.7% to about $8.2 billion, while profits increased to $1.49 billion, compared to $1.44 billion during the second quarter of last year.

Netflix handily beat Wall Street earnings forecasts on Wednesday as a password-sharing crackdown and an ad-supported option helped bring in 6 million new streaming subscribers in the just-ended quarter.

Revenue came in slightly below analyst predictions for April through June, as did Netflix's projection for third-quarter revenue. The company said it expected revenue growth to accelerate in the second half of the year.

Net income for the second quarter topped estimates at $1.5 billion.

The company, like its competitors, is grappling with strikes by tens of thousands of Hollywood actors and writers. The labour action has forced many film and television productions to shut down, though analysts say Netflix has an advantage because of its global production.