- Netflix, Inc (NASDAQ:NFLX) discussed with U.K. telecoms groups that use the American media company as part of bundled TV content ahead of a crackdown on account sharing likely in May.
- Netflix has voiced how the unrestricted use of its platform has hampered its ability to invest in new TV and films and plans to start warning customers over account-sharing violations, Financial Times cites familiar sources.
- Companies like Sky, BT, Virgin Media, and TalkTalk offer Netflix as part of bundled deals on broadband and TV content.
- After crackdowns in Canada, New Zealand, Spain, and Portugal in the first quarter, Netflix found that its new "paid sharing" service had resulted in a "cancel reaction" that led to lower membership growth.
- Once the account-sharing crackdown kicks in, Netflix proposes to urge customers to set a primary location, implying that anyone in their household can use their Netflix account. In case of violation, Netflix proposes to email the subscriber about the extra usage.
- To turn the non-subscribers into paying customers, Netflix looks to launch such warnings across most of its major markets, including the U.S. and the U.K.
- Netflix in April estimated that more than 100 million households shared accounts with other users worldwide.
- Netflix had to postpone the crackdown from the first to the year's second quarter.
- But Netflix said subscribers soon started adding "extra member" accounts after the initial drop-off, boosting revenues.
- Price Action: NFLX shares traded lower by 1.13% at $332.10 on the last check Tuesday.
- Photo by Stock Catalog via Flickr
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
