Netflix is getting ready to penalize subscribers who share their credentials. The massive streaming service has allegedly experienced significant revenue losses and a sharp decline in its subscriber base. Password sharing was one of the reasons given by Netflix for its slow growth. Currently, the company has declared that it will charge users extra fees from users who disclose their login credentials. Netflix will do this by instituting a system that add fees to your plan for “extra member” subaccounts when people outside your household use your membership. The new regulation will go into effect in 2023.
When it confirmed the proposal on Tuesday, the corporation omitted to mention the cost of these new charges. However, this scheme is currently being tried in a few Latin American nations. It levies a premium for each additional member equal to around one-quarter the cost of a “regular” Netflix package.
Netflix mentioned in its earnings report, “Finally, 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 own account, and for sharers to manage their devices more easily and to create sub-accounts (“extra member”), if they want to pay for family or friends. In countries with our lower-priced ad-supported plan, we expect the profile transfer option for borrowers to be especially popular.”
With the aim of increasing its revenue, Netflix has also developed more affordable ad-supported subscription packages. In November, the company will launch its ad-supported subscription plan in select locations. As of yet, Netflix has not disclosed its plans to introduce the more affordable options in India.
The news has not been received well by netizens. Consumers have repeatedly attributed the premature cancellation of shows with a cult following as one of the reasons for their dissatisfaction with the platform. Netflix prioritizes gaining new subscribers and has a policy that encourages binge-watching full seasons in one sitting. This puts slow-burning, more subdued programmes at a higher risk of cancellation. This, combined with the rapid growth of competitors like HBO and Disney, has put Netflix in a precarious position in the market. Only time will tell if this latest crack-down will contribute to more users migrating to other services.
— Meital L | Save First Kill (@mlesherr) October 17, 2022