Netflix is going to charge extra money very soon if you share your Netflix account details and password with another person.
HIGHLIGHTS
- Netflix is losing its subscribers
- $50 billion was spent on streaming services on new accounts last year.
In light of Netflix’s concerning subscriber losses. the company announced today it is going to increase the rate of tests that will charge a higher amount from the member if they share their account with the people outside their household.
The company first started this feature in Costa Rica, Chile, and Peru in March. But now the company is saying that it will implement the same plan in the global market including the U.S in one year.
Netflix said that inflation and the war in Ukraine led to the loss of subscribers for the first time in more than a decade. And the company said it lost 200,000 lakh subscribers in its first quarter.
The streamer clarified that it will need to continually go over again for a year to ensure how much extra it charges for the customer who has shared their account with other users they belong to outside their household.
Honestly, we have been working on this for almost two years. Over a year ago we started launching some of the tests, that informed our thinkers and helped us to build the mechanism that we are deploying in the present.
Netflix chief product officer “Gerg peter” explained on the earnings call. “We just did a first largest country test, but it will take some time to work this out and to get the balance right”.
At present, standard and premium subscriptions of Netflix are getting options to add “sub-accounts” to the service of those who don’t live together. And each sub-account has personalized recommendations and its own profile but it also has its own Netflix login ID and password as well and it’s mandatory.
Because this will set you to become an authorized member in the future with your account only. And if they choose to make that move, their watch list and viewing history will Transfer to their own account with their own billing information.
Since the member sharing their account now, he has to pay extra, he may choose to freeloader off their account when the new charges kick in.
Netflix said earlier that this solution doesn’t apply to location-based data such as GPS. Instead of this, it is taking the benefit of the same information and it uses it today to offer its services to its endless users.
Including device ID, IP address, and account signed into Netflix account. So, in this way, Netflix can recognize that when there is continuous sharing outside the home.
Today Netflix estimated that more than 100 million households are sharing their user accounts all around the world .and more than 30 million of them are from Canada and U.S.
Netflix says that the members who are sharing their accounts have to pay an extra charge, and the company is hoping to strike the right balance of still allowing sharing.
In its trial market, the additional cost for non-domestic members is 2,380 CPL in Chile and $2.99 USD in Costa Rica. and 7.9 PEN in Peru and it is less expensive compared to the Netflix account plan. But to share one’s Netflix account for free then it costs more than the first.
And the company has also said that it is going to introduce an ad-supported plan also.
