Do you share your Netflix password? Very soon you will pay extra
Netflix rolled out its new password-sharing policy in February in four regions, including Canada and Spain, after testing the extra charges in Latin America last year. Now, for many subscribers in the United States, is the time when they have not expected. Password sharing fees are officially rolled out in Q2, at the end of June.
The streaming service announced the move in a letter to shareholders on Tuesday, but did not say how much it would charge in the United States for password sharing. Netflix subscribers who share their passwords with people outside their physical household will have to pay for each sub-account. In countries where paid sharing has already been rolled out, only subscribers on Standard or Premium plans can add additional members, which is limited to two per account. Otherwise, users who live outside a paying member’s household will be blocked from the platform and asked to open their own accounts with the ability to transfer their profiles.
In Canada, where account sharing fees have been implemented, Netflix says its paid subscriber base is “larger than before the launch of paid sharing” and is growing. The company believes it will achieve similar results in the United States. However, during his quarterly investor call on Tuesday, Netflix co-CEO Greg Peters said the streamer is still considering how much to charge.
“We tested different prices in these deployments than we tested in Latin America, and that gives you an idea of how we think about what an optimal price is – especially in wealthier countries. “Peters said.
When Netflix outlined its plans for a crackdown on password sharing in February, the company asked members to set a primary location for their accounts. Subscribers will still have the ability to watch on-demand videos on the go. Customers in Canada must pay CA$8 per month for each additional user. In Spain the fee is 6 Euros, in Portugal 4 Euros and in New Zealand 8 New Zealand dollars. Based on these amounts, Netflix is expected to charge US subscribers between $7 and $8 per sub-account.
The streaming giant has drawn backlash for the policy, which comes after it hiked prices for its most popular subscription tiers in 2022. Some customers have threatened to cancel their accounts once the new fees roll out, and d Others have expressed concerns about their college students, parents and family members in the military being kicked out of their subscriptions.
In late February, Netflix slashed subscription prices in more than 100 markets, including Latin America, Asia, Africa, Europe and the Middle East. Some countries, such as Venezuela, have seen a reduction of up to 50%.
Since experiencing a drop in subscriber numbers in the first quarter of 2022, Netflix has focused on new ways to monetize its service. In November, the company launched Basic with Ads, an ad-supported tier that costs $7 per month and features a feed. Netflix said it is updating the plan to include better video quality and more streams to make it more appealing to new and existing customers. Along with the new low-cost subscription plan, the company credits the release of TV shows like Wednesday, Outer Banks season 3 and Ginny & Georgia season 2 for helping boost viewership and subscriber numbers for the start. of 2023.
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