Netflix has announced its intention to conduct a “broad rollout” of its paid sharing plans in the second quarter of 2023, including in the US, as part of an effort to crack down on password sharing outside the home. The company’s first quarter 2023 earnings reportwhere Netflix revealed that it was pleased with the results of the initial launch of the plan in four countries.
Four markets where Netflix has already introduced paid sharing options are Canada, New Zealand, Portugal and Spain. In February, Netflix introduced a “buy more members” feature in these countries. This allows the primary her account holder to pay an additional monthly fee for subaccounts that can be used by 1-2 of hers who do not live together.
Netflix makes it clear in its guidelines that accounts are meant to be shared within a single household. This is defined as people living in the same location as the account holder. The company states in the customer help section of its website that individuals who are not members of the account holder’s family must sign up for their own account in order to access Netflix content. , you can continue to access the service by using your personal device while traveling or by logging into your new TV, such as a hotel or vacation rental.
A year ago, Netflix estimated that password sharing was illegal in over 100 million free households worldwide. This prompted the company to focus on implementing paid sharing plans to generate revenue from password sharing users. Netflix admits the move isn’t universally popular and may lead to more cancellations.
The company’s co-CEO, Greg Peters, admitted during a Q4 2022 earnings interview that a crackdown on password sharing could lead to an increase in churn. However, Netflix remains committed to addressing the issue and converting users who share passwords to paid members in order to protect revenue and ensure fair use of the service.
Details of the paid sharing plans, including pricing and implementation details, have yet to be revealed, and Netflix will be closely monitoring the rollout results to assess its impact on subscriber growth and revenue. There is a nature.
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