The streaming service has confirmed its plans to combat password disclosure.
Netflix will start charging subscribers an additional fee for exchanging accounts between households in 2023.
Earlier this year, the streaming service introduced password exchange fees in a number of countries, including Argentina, El Salvador, Guatemala, Honduras, Dominican Republic, Peru, Chile and Costa Rica. The price varied depending on the country, but was about 2.99 US dollars (2 pounds sterling) per month.
In an update (October 18) from Cheng Long, director of product innovation at Netflix, the streaming platform decided to “shut down” this feature in these territories after receiving feedback — with plans to roll out a “thoughtful” approach to monetizing account sharing. “in a broader sense” at the beginning of 2023.
The letter to Netflix shareholders says: “We have found a thoughtful approach to the monetization of account sharing, and we will begin its wider implementation starting from the beginning of 2023.
“After listening to consumer feedback, we are going to offer borrowers the opportunity to transfer their Netflix profile to their account, and members can more easily manage their devices and create additional accounts (“additional members”) if they want to pay for family or friends.
“We expect that in countries with a cheaper ad-supported tariff plan, the option of transferring a profile for borrowers will be especially popular.”
It’s unclear if this “extra member” fee will follow the same $2.99 price, and an announcement is expected soon.
Netflix is going to launch a cheaper ad-supported tier in the UK on November 3 at a price of 4.99 pounds per month. The new level will be deployed in 11 more countries, including the USA, Canada, Mexico and Australia.