Netflix cracks down on account-sharing
December 30, 2022
Since Netflix recently added 2.4 million subscribers to their streaming service, the company has decided to start cracking down on password sharing. It is very common for Netflix users to share their password with those they know so that others can enjoy the content the service has to offer.
By using what is called a “sub-account,” Netflix is planning on monetizing password sharing. Netflix decided to test their idea by prompting users in Costa Rica, Chile, and Peru to pay for a sub-account if Netflix detected someone using another’s account.
On November 3rd, Netflix announced that it will be releasing the basic subscription that is a $6.99 per month add-supported tier. It will be released in the US, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexica, Spain, and the UK. This plan will limit access to a full library of tv shows and movies, and people cannot download content onto their phones or laptops.
In March of 2023, Netflix will officially start monetizing off of account sharing. The service will force people to pay if a password is shared outside of one’s household. Netflix said that if users want to share an account or borrow another account, there will be an option to transfer profile information including viewing history and content recommendations. However, the “sub-account” fee will still hold true in an effort to try and eliminate the sharing of passwords.
When this was tested in Chile, Costa Rica, and Peru, users had to pay an extra $2.99 for each sub-account. Although this may not seem drastic, Netflix is anticipating adjusting the price for different countries depending on various factors. According to Time Magazine, Netflix claims that this endeavor is a “big opportunity” for revenue growth given the decline in subscribers due to people sharing accounts with friends and family.
Netflix is confident that this crackdown will succeed. This is contingent on the projected double in current subscribers as the basic plan with ad-supported content becomes increasingly popular among the masses. Whether this is good or bad truly depends on the viewers’ opinions after they opt for a basic plan or continue to pay fees for sub-accounts.