Netflix is cracking down on password sharing in the United States, the United Kingdom, and Australia

Netflix issued a vaguely-threatened statement on May 23 that read, "A Netflix account is for use by one household." Every member of that household is able to use Netflix wherever they are, whether they are at home, traveling, or on vacation. They can also benefit from additional services like Transfer Profile and Manage Access and Devices.

After that, it went on to describe how consumers might add a second member to their Netflix account for a guest. Prices will vary depending on the country, with the US paying $7.99 per month and the UK paying £4.99 per month. A user's profile can be transferred so that they can maintain their entire viewing history and recommendations.

According to a 2018 survey, 26% of millennials share a password from another user's account to stream movies and TV shows. Netflix technically already forbids password sharing outside of single households. The Netflix service and any content accessible through the service are for your personal and non-commercial use only and may not be shared with people outside of your household, according to their terms and conditions. These guidelines, however, plainly weren't followed earlier. A user's profile can be transferred so that they can maintain their entire viewing history and recommendations.

According to a 2018 survey, 26% of millennials share a password from another user's account to stream movies and TV shows. Netflix technically already forbids password sharing outside of single households. The Netflix service and any content accessible through the service are for your personal and non-commercial use only and may not be shared with people outside of your household, according to their terms and conditions. These guidelines, however, plainly weren't followed earlier.

This recent development may come as a surprise to password parasites all over the world, but it has been a long time coming. Back in February, the video streaming company announced efforts to prevent password sharing in Canada, New Zealand, Portugal, and Spain, adding that the functionality would be rolled out globally later this year.

However, Netflix previously stated that password sharing was not a worry and, in fact, was one of the reasons the streaming service was so popular. The official Netflix Twitter account posted in 2017: "Love is sharing a password." Why did you suddenly change your mind? Well, it doesn't appear to be a financial issue. In the first quarter of 2023, Netflix reportedly collected $2.1 billion in free cash flow.

Netflix (NFLX), a long-time free cash flow generator, is suddenly telling investors a different story. Netflix earned a remarkable $2.1 billion in free cash flow in the first quarter, which went mostly unnoticed in the company's latest financial report, which was released late Tuesday.

Operating cash flow less capital expenditures equals free cash flow. A corporation achieves free cash flow by being profitable and sensibly investing those profits in "stuff" such as plants and equipment. The extra capital might then be used to boost investors' total return potential through stock buybacks or dividend hikes. Netflix has consistently displayed negative reads, or outflows, on the free cash flow line, which is partly due to its aggressive business investments and emphasis on low prices (which resulted in losses).

Remember that Netflix experienced a negative cash outflow of $10.5 billion from 2015 to 2019. As a result of the COVID-19 epidemic, the corporation became free cash flow positive in 2020, with $1.9 billion in free cash. In 2021, the company reported a $132 million free cash outflow, followed by a $1.6 billion free cash flow in 2022. However, the company's dynamic has now begun to routinely change, enhancing the free cash flow picture. It reflects, in part, a better-run, more mature firm.