Netflix Cracks Down on Password Sharing, Charges $7.99/Month for Additional Users
Netflix Expands Crackdown on Illicit Password Sharing, Targets U.S. Customers
Paid Sharing Plans: Netflix Launches New Membership Options to Combat Password Sharing
Netflix Implements Device Blocking for Non-Paying Users in Password Sharing Crackdown
Netflix Rolls Out Paid Sharing Plans Worldwide, Faces Cancel Reaction in Some Markets
Netflix is taking action against password sharing by introducing paid sharing plans, starting with its biggest market, the United States. The streaming giant will charge an additional $7.99 per month to add an extra user to an account. In an email to U.S. customers, Netflix emphasized that the account is meant for the account holder and those living in the same household. Users can transfer a profile to a new membership paid by someone else or purchase an extra member subscription. The crackdown will also be rolled out in other countries, including the UK, Ireland, Australia, and the Philippines.
As part of the effort to prevent unauthorized access, Netflix will block devices that attempt to log in without proper payment after a certain period of time. However, members will still be able to access their accounts while traveling or using personal devices. The paid sharing plans were initially announced for the second quarter of 2023 but were postponed from the original schedule. Netflix has seen a "cancel reaction" in markets where the paid sharing plans have been introduced, but they have also observed growth in paid memberships.
Netflix aims to establish a one-to-one relationship with subscribers and reduce pricing and membership distortions caused by password sharing. The company believes that some password-borrowers have a high likelihood of converting to paid sharing plans if they consume content similar to paying accounts. While there may be initial cancellations, Netflix expects to see membership and revenue grow through this approach. The revenue generated from primary accounts and sub-accounts contributes to higher average revenue per membership.
The streaming giant conducted paid-sharing tests in Latin American countries and introduced the buy-an-extra-member option in Canada, New Zealand, Portugal, and Spain. The results in Canada have been promising, with a larger paid membership base compared to before the launch of paid sharing. However, Netflix anticipates that the broader rollout of paid sharing plans will impact subscriber growth in the second quarter. Despite the potential challenges, Netflix remains committed to building a stronger relationship with its members and providing a range of membership options to combat password sharing.
