Netflix has been testing various ways to crack down on password sharing since March 2021, such as a log-in verification process, and features that allow members to add a sub-account for a small fee and transfer their profile information to a new account or sub-account. The company has also been testing a feature that allows users to buy additional “homes” to use a TV or TV-connected device outside their household and a feature that allows users to view devices that have streamed from their account and log out those they don’t want to have access to it.
Netflix plans to charge for password sharing and extra member subaccounts in the next two months as a way to monetize account sharing and increase revenue. This move comes after the company recorded its deepest subscriber losses in a decade. This move is an effort to get freeloading viewers to pay up.
The move is being seen as a necessary step for Netflix to maintain its profitability. Because the company has seen a significant increase in the number of users sharing their account information. This has led to a loss of revenue, as many of these users are not paying for their subscriptions. By charging for password sharing, Netflix hopes to recoup some of this lost revenue and ensure that all users are paying for their subscriptions.
The rise of streaming services, led by Netflix, has prompted other major media companies to invest heavily in their streaming operations. This has directed an expansion of new services. For instance, such as Disney Plus, HBO Max, Peacock, Paramount Plus, and Apple TV Plus. This has made it more complex for consumers to access their desired content. Because they may have to subscribe to multiple services.
How much will be the password sharing cost?Â
The company hasn’t announced the pricing for the new charges yet. But a fee system has been tested in Chile, Costa Rica, and Peru. In these countries, the fee is roughly equivalent to one-quarter of the price of a Standard plan on average. If Netflix applies this pricing model to the US, it would cost between $3.50 and $4 for each additional member sub account with a tested range.
In addition to that, Netflix remains poised to crack down on password sharing outside of households. They are beginning to roll out paid sharing more broadly and are testing ways to “monetize account sharing.” This makes up for their deep subscriber losses. Netflix will start charging accounts for password sharing within the next two months. Also, the fee system expects to be equivalent to one-quarter of the price of a Standard plan, on average. They are also launching cheaper subscriptions supported by advertising.
When will Netflix begin charging for sharing my password?
Netflix announced that they will be rolling out account-sharing fees beyond their test countries before the end of March. Although, a full global rollout will take a couple of quarters. The rollout will be progressive across markets, starting in a selection of places and expanding from there.
It is unclear which countries will be the first to implement the new fees and exactly when the rollout will carry out globally. Netflix co-CEO Greg Peters has stated that the rollout will begin later this quarter and staggered across countries. But the full implementation will take place over the next couple of quarters.
Further, Some users have expressed concerns about the new policy. They argue that it may discourage people from sharing their account information. However, it is important to note that this policy is not intended to discourage sharing. But rather to ensure that everyone is paying for their subscriptions. Additionally, the low fee that will be charged for additional users is expected to be affordable for most people. It makes it a relatively small price to pay for the convenience of sharing an account.
Another concern raised is that the new policy may make it harder for families to share a subscription. However, it is important to note that the new feature will allow users to share their account information with up to four people. This should be more than sufficient for most families.
Final Verdict
Netflix’s decision to charge for password sharing is a necessary step for the company to maintain its profitability. The new feature will allow users to share their account information with up to four people. Along with an additional fee for each additional user. While some users may be concerned about the new policy. It is important to note that the expected fee will be low and affordable for most people. Additionally, the intention to apply the new policy is not to discourage sharing, but rather to ensure that everyone is paying for their subscriptions.
