Netflix has initiated its global password sharing restrictions, but the launch has not gone smoothly.

On May 23, the streaming giant announced that its controversial plan to limit password sharing would be implemented in various regions, including the US, UK, and Australia. This decision came just a month after Netflix initially hinted at these changes.

While users who have been using shared accounts had some warning, the immediate enforcement of this plan has led to significant backlash. Many subscribers, particularly those who have relied on others' accounts, are expressing their frustration and choosing to cancel their subscriptions.

The core issue driving these cancellations is the steep fee Netflix is imposing for those wanting to share their account with individuals outside their household. According to Netflix's announcement, users can add an extra viewer for an additional charge of $7.99 in the US, £4.99 in the UK, and $7.99 in Australia per month. To put this into perspective, this fee is equivalent to the cost of Netflix's 'standard with ads' plan.

For subscribers to the premium tier, which includes benefits like support for four devices and 4K streaming, the total monthly cost could soar to nearly $30 if they wish to add another user.

The reaction among Netflix's customer base has been overwhelmingly negative. Many users have taken to forums to voice their dissent, with reports indicating that around 80% of commenters have either canceled their subscriptions or plan to do so once they finish watching their current shows. Netflix appears optimistic that viewers will quickly find new content to engage with, but the initial response suggests a rocky road ahead.The situation for Netflix continues to be challenging, particularly on platforms like Twitter.

A simple search for terms like "Netflix password sharing" reveals a wave of frustration from users who are distancing themselves from the service.

This sentiment is echoed in discussions on Reddit, where many long-time subscribers have announced their decision to boycott Netflix.

One user pointed out the irony of Netflix attempting to penalize customers for sharing passwords, a practice the company previously encouraged.

This backlash reflects a broader hope among users that a significant number of cancellations will pressure Netflix to reconsider its stance.

After all, sharing passwords was once seen as a community-friendly action.

However, it's unlikely that Netflix will cave in to public outcry.

In its Q1 2023 earnings call, the company shared that after implementing its password sharing policy in regions like Latin America, Spain, and Canada, there was an initial wave of cancellations.

In Spain, for instance, over a million accounts were closed following the trial, as reported by Kantar.

Yet, Netflix later recorded a rebound in subscriptions, with both new and returning users signing up.

According to the BBC, the subscriber count in Canada has even surpassed its previous levels pre-policy rollout, contributing positively to revenue.

If this trend continues, Netflix may view its password sharing crackdown as a successful strategy.

With a lineup of highly anticipated movies and returning popular series like Stranger Things Season 5, Squid Game Season 2, and The Witcher Season 3, Netflix is likely confident that subscribers will return in droves.Netflix is likely to report a reduced global user base during its Q2 2023 earnings call.

The company's recent password-sharing restrictions have contributed to a decline in subscribers, but this isn't the only factor.

Supporters of the ongoing Writers Guild of America (WGA) strike, along with viewers upset by the cancellation of popular shows such as Lockwood and Co , have also left the platform.

Thus, it’s reasonable to anticipate a noticeable, though potentially temporary, reduction in Netflix's audience in the near future.

For further insights into Netflix's password policy changes, you can explore why the company forewarned its partners about an expected revenue drop ahead of its global implementation.

You might also want to consider whether to keep your Netflix subscription amidst these developments.

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