Netflix plans to expand its paid account-sharing feature to the US in Q2, following successful launches in Canada, New Zealand, Portugal, and Spain. The feature allows primary account holders to pay an additional monthly fee to share their Netflix service with up to two people outside of their household. The move aims to reduce the number of non-paying households accessing Netflix, estimated to be over 100 million, and increase the company’s ability to invest in new content.
Netflix acknowledges that restricting account sharing may lead to some cancellations but believes it’s a necessary step. The announcement comes as the streaming giant also reveals plans to discontinue its DVD rental business in September.