Netflix will finally crack down on password sharing. Here’s what that means for you

Netflix did not say what price the subscriber will have to pay to add an extra member. It’s also unclear how many members a user will be allowed to add. — Reuters

If you are of one of many people who share a Netflix password with family members or friends, you may only have a few more months to enjoy that luxury.

Because starting in “early 2023,” Netflix will begin charging customers who share their account, the streaming service announced in its earnings report on Tuesday, Oct 18.

Netflix previously launched a pilot program in some South and Central American countries to monetise account sharing, McClatchy News reported, and it appears that setup is launching globally.

So how does it work?

Netflix said Tuesday that users will have the option to create sub-accounts if they want to pay for extra users. This falls in line with the trial that debuted in March in Chile, Costa Rica and Peru.

With the feature, subscribers pay an additional fee to add anyone outside of their household to their account. Those extra members get their own login information and only the primary account holder is charged.

Netflix did not say what price the subscriber will have to pay to add an extra member. It’s also unclear how many members a user will be allowed to add.

If a person who borrows a Netflix account from a subscriber chooses to pay for their own account, their profile can be transferred to their new account, the company said.

Before the earnings report announcement, a Netflix spokesperson told McClatchy News it would not make changes for other countries “until we better understand what’s easiest for our members.” Netflix said Tuesday it listened “to consumer feedback” to introduce the new feature.

Last week, on Oct 13, Netflix announced a new plan starting at US$6.99 (RM33) per month that will include ads before and during shows and films. The United States is among the 12 countries where the new plan will be available starting Nov 3.

“In countries with our lower-priced ad-supported plan, we expect the profile transfer option for borrowers to be especially popular,” Netflix said in its earnings report.

The features are part of a continued push for the streaming service giant to gain new subscribers.

Netflix said it added 2.4 million subscribers in the third quarter, which more than doubled its estimate. – The Charlotte Observer/Tribune News Service

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