Netflix, faced with its first subscriber loss in over a decade, is feeling the pressure to boost its revenue.

The streaming giant has traditionally turned a blind eye to password sharing but is now considering a crackdown to tackle the issue.

In the first quarter of 2023, Netflix reported a loss of 200,000 subscribers, attributing it to several factors including stiff competition from streaming services like Disney+ and HBO Max.

By addressing password sharing, Netflix aims to tap into potential revenue from the estimated 100 million households using Netflix accounts without paying for them.

Even if a fraction of these users convert into paying customers, it could result in billions of dollars in additional revenue.

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The company’s decision to tackle password sharing has elicited mixed reactions. Some subscribers are displeased with the idea of paying for something they have enjoyed for free over the years.

On the other hand, there are those who understand Netflix’s position and believe it is justified in recouping lost revenue.

In the United States, Netflix offers various pricing tiers, ranging from the Standard ad-supported plan at $6.99 per month (allowing 2 devices at a time) to the Premium plan at $19.99 per month (permitting 4 devices at a time).