Netflix began its crackdown on password sharing on May 23 by sending emails to members who were known to be sharing accounts outside their household. Under the new rules, anyone sharing their account log-in with family or friends who don’t live at the same address must pay an extra $7.99 a month for each additional person. Despite some angry users threatening to switch to other streaming platforms like Disney Plus or Max, Netflix executives can breathe a sigh of relief with the surge in new subscription numbers.

The crackdown on password sharing is part of Netflix's efforts to boost revenue and profitability. The company has been investing heavily in original content and expanding into new markets, which has led to significant increases in its operating costs. By curbing password sharing, Netflix can generate additional revenue from its existing user base without having to increase its subscription fees for everyone. The move is also aimed at reducing the number of freeloaders who are using the service without paying for it, which can help improve the quality of the user experience for paying customers. However, the crackdown is not without its risks, as it could alienate some users who feel that they are being unfairly targeted. It remains to be seen whether the surge in new subscriptions will continue in the long term or whether it is just a temporary blip.06:25 PM