Netflix Prepares To Battle Password & Account Sharing
Netflix in its third-quarter earnings call reported that its annual operating profit surpasses its competitors. However, the streaming platform is doing more to ensure it stays profitable in the long run. Yet, the new revelation might not be good news for subscribers that have a habit of sharing passwords with friends and families. What is this new step being taken by the streaming giant? Keep reading to find out the details!
Netflix’s New Extra User Feature Allows Account Info Transfer
Starting in 2023, Netflix will charge extra member fees to curb the long-standing password-sharing practice. On October 18, a shareholder letter issued by Netflix revealed the details of the Q3 earnings call. This letter also talked about the new move. The company said that this new approach will help them monetize account sharing among its current and future subscribers. As per CBR.com, this upcoming feature will allow password borrowers to transfer existing information from their profiles into their own accounts. This includes the viewing history and custom recommendations.
[Source: YouTube]
Additionally, this feature allows users that share their Netflix credentials to create an extra user account if they wish to pay for it. In their statement, the streaming giant mentioned, “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 if they want to pay for family or friends.”
How Much Will The Sub-Accounts Cost For Subscribers?
As of now, Netflix hasn’t confirmed how much these sub-accounts would cost for the subscribers. However, the concept was beta-tested in some South American and Latin countries like Chile, Peru, and Costa Rica.
[Source: YouTube]
The extra member fees charged in these locations were equal to a quarter of Netflix’s regular plans. Netflix also expects that the profile transfer option for borrowers will be particularly popular among users in countries that have lower-priced ad-support plans.
Netflix Introduces Ad-Supported Low-Cost Subscription Tier
Among the slew of changes introduced by the streaming company, it revealed the launch date for its first low-cost subscription tier. However, this subscription tier is ad-supported. The feature will roll out soon on November 3, 2022, at 9 a.m. PT. This move is an effort to bring back lost subscribers that the company revealed back in January 2022. In a letter, the streaming giant expressed the reason for creating this new feature. The company said that introducing this extra member fees scheme will help drive revenue for the company.
[Source: YouTube]
Password sharing was a global practice that prevented it from making substantial investments in its TV or film initiatives. In its latest earnings call, Netflix confirmed that it gained about 2 Million+ subscribers. It also anticipates a spike in new subscribers in the fourth quarter of this year that could go as high as 4.5 Million.
What do you think of this new Netflix feature that charges for an extra member? Share your thoughts in the comments!
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