Netflix announced on Wednesday that it is experimenting with charging a price to subscribers who share their accounts with people who do not live with them. The streaming service, which is based in the United States, has long been casual about users sharing passwords with relatives and friends, but its stock recently plummeted when quarterly results revealed slowing subscriber growth.
Meanwhile, competition in the streaming television market has increased, especially from Disney, and the expense of producing sought original series has increased as well. Netflix will begin offering users in Chile, Costa Rica, and Peru the option to add up to two persons to “sub-accounts” for a monthly price of $2 to $3 in the coming weeks, according to Netflix product innovation director Chengyi Long.
“We recognise that people have a variety of entertainment options, so we want to make sure that any new features are flexible and useful for members, whose subscriptions fund all of our excellent TV and movies,” Long wrote in a blog post. She claimed the Silicon Valley streaming titan is exploring on methods for users to contribute “outside their household… while also paying a little bit more.” People who already share accounts will be able to transfer their prole and viewing history information to new sub-accounts, according to Netflix. Long stated that the corporation will assess the new model’s utility in the three nations before adjusting elsewhere.
After booming during coronavirus lockdowns that kept people at home and on the platform, Netflix ended last year with 221.8 million subscribers, significantly short of its target.
Netflix has announced price increases in the United States, with the lowest affordable option now costing $9.99 and the costliest option costing $19.99.