Why is Netflix cracking down on password sharing?

Netflix is cracking down on password sharing as part of its strategy to secure revenue streams and ensure that each viewer using the platform is doing so through an authorized account. The company has observed that widespread password sharing among individuals who are not living in the same household undermines its subscriber growth and potential earnings. By enforcing rules against account sharing, Netflix aims to convert unauthorized users into paying customers, thereby increasing subscription numbers and boosting revenue. This shift also reflects the growing competition in the streaming industry, where maximizing subscriber bases is crucial for content investment and overall business sustainability.