It has become increasingly common for individuals to share their Netflix account with others, rather than paying for their own subscription. However, the streaming service may soon be cracking down on this practice. In a letter to shareholders, Netflix announced plans to “roll out paid sharing more broadly” in the first quarter of the year. This means that by the end of March, users may have to pay to access Netflix’s content even if they are using someone else’s account. The company cited the 100 million households that share accounts as “undermin[ing] its ‘long term ability to invest in and improve Netflix’.” They also stated that while their terms of service already limit account use to a single household, they recognize this may be a change for users who share their account more broadly. Some regions in America have already conducted a shared password trial, charging an additional fee for members outside of one’s household. As a result, some Latin Americans cancelled their subscription due to the additional charges. Netflix predicts a short-term decrease in engagement but expects revenue to improve as more individuals subscribe to their own accounts. #DAWN
“As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with,” the shareholder letter read.
A shared password trial has already been conducted in some regions in America where it cost $2 or $3 to add a member account for someone outside one’s household. As a result, some Latin Americans cancelled their subscription due to extra charges. Netflix expects near-term engagement to go down but also for the overall revenue to improve as people with borrowed accounts start subscribing themselves.”
