The cost of your Netflix subscription is about to increase if you are a kind subscriber and share your Netflix login with a friend or co-worker. The streaming giant will start charging customers for password sharing early next year as part of its increased attempts to compel rogue subscribers to pay up.
Netflix stated in a letter to investors that “additional member” subaccounts would be made available by the beginning of 2023.
“We’ve landed on a thoughtful approach to monetizing account sharing, and we’ll begin rolling this out more broadly starting in early 2023. After listening to consumer feedback, we are going to offer the ability for borrowers to transfer their Netflix profile into their account, and for sharers to manage their devices more easily and to create sub-accounts (“extra members”) if they want to pay for family or friends,” the the company announced in the letter.
“In countries with our lower-priced ad-supported plan, we expect the profile transfer option for borrowers to be especially popular,” the OTT platform further said.
When it confirmed the proposal on Tuesday, the corporation didn’t mention the price of these new extra account fees. However, this option, which is currently being tested in a few Latin American nations, levies a premium for every additional subscriber that is equivalent to around one-quarter of the cost of a “regular” Netflix package.
This is not the first time Netflix has experimented with a clampdown on password sharing. According to The Verge, last year, the company experimented with an account verification tool to keep unauthorised users from mooching off of others’ accounts.
Also read | Netflix To Debut Subsidised Plan With Ads In These Countries
Last week, Netflix said a subscription option subsidised by ads will debut in November in a dozen countries as the streaming service strives to jumpstart growth. Netflix chief operating officer Greg Peters said in a briefing that basic with ads subscriptions will cost $6.99 in the United States, three dollars less than the basic option without ads.
“The timing is great because we are at this pivotal moment in the entertainment industry and the evolution of that industry,” Peters said. “Now streaming has surpassed both broadcast and cable for total TV time in the United States.”
The ad-discounted tier, a first for Netflix, will roll out in Australia, Brazil, Britain, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain, and the United States.
Nearly all of the Netflix library will be available, with some offerings held back until licencing deals are renegotiated. Video ads will be between 15 seconds to 30 seconds long.