Costco tightens restrictions on membership sharing | Global News

During the covid pandemic, sharing memberships became a popular trend as people sought entertainment options while stuck at home. With major sports leagues shut down and new movies and TV shows on hold, streaming networks became a lifeline for many looking to pass the time.

As demand for streaming services like Netflix and Disney+ surged, so did the practice of sharing passwords with friends and family to access premium content without paying additional fees. However, as traditional shows and movies resumed production and streaming demand slowed, password sharing began to impact the profits of these companies.

Netflix took steps to crack down on password sharing, but the issue extended beyond streaming memberships. Retail giant Costco also faced challenges with members sharing their memberships, leading the chain to implement stricter measures to prevent unauthorized access.

Costco members pay annual fees for access to the chain’s warehouses, with the option to bring guests but only the cardholder can make purchases. In response to increased membership sharing, Costco has introduced new technology at select locations to verify membership cards upon entry, reducing the need for manual checks at checkout.

The pilot program aims to streamline the entry and checkout process while preventing nonmembers from accessing member benefits and pricing. Costco’s efforts to curb membership sharing reflect a broader trend of companies taking action to protect their revenue streams and ensure fair access for paying customers.