-By ArdorComm News Network
October 20, 2022
If you are a considerate subscriber and give your Netflix password to a friend or co-worker, the cost of your subscription is set to go up. In an effort to make more rogue subscribers pay up, the streaming giant will begin charging customers for password sharing from next year.
In a letter to investors, Netflix stated that “additional member” subaccounts would be made available by the start of 2023.
“We’ve landed on a thoughtful approach to monetizing account sharing, and we’ll begin rolling this out more broadly starting in early 2023. After listening to consumer feedback, we are going to offer the ability for borrowers to transfer their Netflix profile into their account, and for sharers to manage their devices more easily and to create sub-accounts (“extra members”) if they want to pay for family or friends,” the the company announced in the letter.
The OTT platform added, “In countries with our lower-priced ad-supported plan, we expect the profile transfer option for borrowers to be especially popular.”
The company didn’t reveal the cost of these new additional account fees when it confirmed the proposal on Tuesday. The premium for each extra member under this option, which is presently being tested in a few Latin American countries, is equal to around one-quarter of the price of a “regular” Netflix subscription.
Netflix has previously experimented with a crackdown on password sharing. The company reportedly tested with an account verification tool to prevent unauthorised users from using other people’s accounts last year, according to The Verge.
In an effort to kickstart its development, Netflix stated last week that a membership option supported by advertisements will launch in a dozen countries in November. According to Netflix COO Greg Peters, a basic subscription with ads will cost $6.99 in the US, which is $3 less than the basic subscription without ads.
The time is ideal because the entertainment business is at a turning point in its development, according to Peters. In the United States, streaming has presently exceeded both broadcast and cable for total TV time.
An industry first for Netflix, the ad-discounted tier will launch in the following countries: Australia, Brazil, Britain, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain, and the United States.
The Netflix catalogue will be almost completely accessible, with certain content being withheld while new licencing agreements are being worked out. The length of each video ad will be between 15 and 30 seconds.