Netflix stated that it lost 200,000 members in the first quarter of 2022 and that it will eventually charge $100 million for shared accounts in its early April announcement this year. By 2023, Netflix intends to make money off of 100 million families sharing passwords, according to The Wall Street Journal.
Starting in 2023, Netflix will levy a little price on users who exchange passwords; we believe the streaming service tested this change earlier this year as a $3 add-on in Chile, Costa Rica, and Peru. However, it’s feasible that Netflix will simply need users to create a second account in order to receive a marginally reduced membership.
Additionally, Netflix plans to make this change in the United States first, early in 2019. Users who share accounts with friends or family members who do not reside in the same household will be required to pay an extra cost when the change takes effect. Depending on IP addresses, device IDs, and account activity, this adjustment will be made.
For a company that once tweeted, “Love is sharing a password,” it’s a stark contrast. The project is a part of Netflix’s effort to combat slow growth, especially in the US market. After years of disagreement, Netflix has also modified its policy on including adverts in programming.
A $6.99/month tier with advertisements was introduced in November in order to draw in new clients who were searching for a more affordable substitute for more expensive services without adverts.
In the Latin American countries where the change is now being tested, Netflix does not appear to forbid users from exchanging passwords, according to the story. They must instead enter a verification code that was sent through SMS or email to the primary account holder.
Users can access the shared account after entering the verification code, but the service keeps displaying prompts until the account holder pays the add-on fee. Those with knowledge of the matter claim that Netflix is considering a similar solution for the US market.
Although the add-on cost would enable Netflix to make more money from password sharing, it might also lead some users to cancel their subscriptions. The streaming goliath has reportedly investigated a number of challenging scenarios that can irritate customers and result in subscriber loss.
We don’t yet know how the platform plans to respond to any issues that might arise when the update is put into place, though. In contrast, Netflix has not yet addressed the matter.