Streaming service Netflix is laying down the law when it comes to account sharing as the company may start charging for it. They have reached their limit regarding the account-sharing situation that goes on. Netflix makes it known that the days of using without charging and paying for it are close to being done.
What are they going to do? They may start charting subscribers to the platform $3-$4 extra per month early in 2023. This will be done for every additional profile appearing on the “Who’s Watching?”screen. The news came down during the company’s quarterly earnings call on Tuesday.
Netflix Has New Plan As Countermeasure To Password-Sharing
The executives at Netflix actually did tease these sharing surcharges back in April. This came about after the company reported really bad first-quarter earnings hurt by a plunge in subscriber totals. “We’ve landed on a thoughtful approach to monetize account sharing and we’ll begin rolling this out more broadly starting in early 2023,” Netflix announced, according to the New York Post. “After listening to consumer feedback, we are going to offer the ability for sharers to manage their devices more easily and to create sub-accounts, if they want to pay for family or friends.”
Meanwhile, this new plan happens to be a rather dramatic countermeasure to a password-sharing situation. That has hurt Netflix since it started up. The company does tell users not to share their passwords with people outside of their homes. Yet this practice actually costs Netflix more than $6 billion per year in lost revenue. It comes from users taking advantage of others’ accounts.
Subscriber Total Dropped Nearly 1 Million In Q1
When the subscriber total dropped by nearly 1 million in Q1, that’s when the bells were rung about this problem. How much extra will the company charge for additional uses? That has not been announced yet. But the company actually has been working on the account sharing problem in Latin America. In that region, those who hold accounts happen to be charged an extra $3-$4 per “second home” using Netflix. The company adds that each additional user’s cost will actually vary. That’s because of the price of that initial account being used.
Those account holders who come on the platform through an ad-supported package will actually pay less for every extra user. What about those who want to ditch their “borrowed” Netflix account? There will be an account migration tool that will be available. Finally, it allows users to move their profile on someone else’s account to a new, full-priced independent one. Netflix will reveal more news on this matter as it becomes available.