Netflix Will Battle Password Sharing by Charging ‘Extra User’ Fees

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Netflix reveals in its Q3 earnings name that it’ll cost additional member charges in 2023 in response to the long-standing apply of password sharing.


Netflix will cost additional member charges in 2023 because the streaming service battles the long-running apply of password sharing amongst its customers.


In a shareholder letter issued by Netflix on Oct. 18 revealing particulars from its Q3 earnings name, the subscription streaming and manufacturing firm mentioned it is created a brand new strategy to monetize account sharing amongst its customers. The new characteristic, which will likely be unveiled in early 2023, permits password debtors to switch current profile data into their very own accounts, together with suggestions and viewing historical past. Additionally, the characteristic lets customers who share their credentials create additional consumer accounts ought to they need to pay for his or her family members to make use of the service. “After listening to consumer feedback, we are going to offer the ability for borrowers to transfer their Netflix profile into their own account, and for sharers to manage their devices more easily and to create sub-accounts (‘extra member’), if they want to pay for family or friends,” Netflix mentioned.

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Netflix did not verify how a lot the sub-accounts would price, although it has examined this apply in some Latin and South American international locations like Costa Rica, Peru and Chile, charging additional member charges that equate to round 1 / 4 of an everyday Netflix plan. The streaming entity additionally said it expects the profile switch choice for debtors to be significantly widespread with customers primarily based in international locations with their lower-priced ad-supported plan. Netflix just lately introduced the launch date for its first ad-supported subscription tier. It will roll out on Nov. 3 at 9 a.m. PT.

This information follows up on Netflix’s shareholder letter in April the place it revealed the corporate misplaced subscribers for the primary time in 10 years in January 2022. In the letter, Netflix expressed that cracking down on password sharing would drive income for the corporate and that such a apply prevented it from making investments in TV and movie initiatives.


Netflix Is On the Rise Once Again

In the Q3 earnings name, Netflix revealed it gained over two million subscribers within the third quarter of 2022. And it anticipates a subscriber spike of 4.5 million new subscribers within the fourth quarter of this 12 months. Netflix additionally claimed it was the one worthwhile streaming service round.

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Netflix has been having fun with a robust previous couple of months with the July 2022 motion thriller The Gray Man and the September 2022 sequence Monster: The Jeffrey Dahmer Story amongst its most-watched unique sequence and movies ever. Furthermore, its most profitable animated unique sequence ever additionally got here in Q3 with the July 2022 launch of The Sea Beast.

Source: Netflix



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