Netflix is adopting techniques it had disregarded for years as it feels the heat of increased competition for your attention and membership account. The end of Netflix password sharing is coming.
Netflix is stepping up its efforts to compel freeloading users to pay, and will begin charging accounts for password sharing early next year, as well as adopting a system that adds fees to your plan for “extra member” subaccounts when others outside your home use your membership.
When the corporation revealed the scheme on Tuesday, it did not identify the cost of the extra charges. However, this model is already being tested in a few Latin American countries, and it levies a fee for each additional member that is around one-quarter the cost of a “standard” Netflix membership.
Assuming Netflix continues with this approach, each additional member subaccount in the United States would cost between $3.50 and $4.
Following years of being relatively lax about password sharing, Netflix began experimenting methods to make shared accounts pay after suffering its largest subscriber losses ever earlier this year. In addition to the password-sharing fees, Netflix intends to provide lower-cost memberships backed by advertising next month.
Netflix’s streaming video domination, combined with years of unrelenting subscriber growth, compelled nearly all of Hollywood’s big media corporations to invest billions of dollars in their own streaming businesses. These so-called streaming wars spawned a slew of new services, like Apple TV Plus, Disney Plus, HBO Max, Peacock, and Paramount Plus – a deluge of streaming options that has complicated how many services you must use (and, in many cases, pay for) to watch your favorite shows and movies online.
Netflix is adopting techniques it had disregarded for years as it feels the heat of increased competition for your attention and membership account.
Netflix’s password-sharing charge system seems to be based on a mechanism it has been experimenting in Chile, Costa Rica, and Peru for roughly six months.
Netflix announced on Monday the deployment of a profile-transfer function, which is a significant component of the password-sharing fees being tried in Chile, Costa Rica, and Peru. This tool allows you to transfer a profile generated on a shared Netflix account’s watch history and suggestions to a new, independent account. This new account can then be added to the Standard or Premium subscription plan of someone else.
Netflix announced in July that it would try a new strategy in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras. This test designated an account’s primary residence as the membership’s “home” If you stream at any other houses for more than two weeks, the account will prompt you to set up – and pay for – extra “homes,” with a restriction on how many further homes you can add depending on how much you already pay for Netflix. Netflix appears to be abandoning one model in favor of another that was evaluated.
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