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03.11.2022 - 18:09 / dailyrecord.co.uk
Netflix could be cracking down on account sharing with a new fee as the company launches a new advertising subscription plan today.
The possible change is aimed to reduce account sharing between households. Netflix piloted the idea in Latin America earlier this year, charging customers £2.50 to allow additional households to use their login password.
This move comes as Netflix debuts a subscription featuring adverts on November 3. The plan comes in at £4.99 monthly - £3 cheaper than the most popular standard plan which costs £7.99.
Customers would save £11 when compared to the £15.99 premium package under a new plan launching at 4pm, reports Wales Online.
Named 'Basic with Adverts', subscribers of the new tier will be subjected to watching approximately five minutes of adverts per each hour of viewing.
In another bid to boost subscription numbers, the streaming giant may seek to expand its trial period to other regions, asking all subscribers who want to share accounts to pay the monthly fee.
Digital i data revealed that if half of European territory account sharers were to shell out the £2.50 for a second home, an extra £245m in annual revenue could be generated for the company.
The media analysis site reports that about a quarter of all UK accounts are shared and an estimated 19 million accounts are used in multiple homes in Netflix's European territories alone.
The biggest level of account swapping occurs in Poland and Italy, according to Digital i, with nearly half of all accounts being shared in the former.
Matt Ross, Product Manager at Digital i said: "Motivating those who share accounts across multiple households to pay extra for an additional household, or to drop into the new ad tier, if they already can share across
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Netflix has confirmed it will charge households worldwide for "shared accounts" as a way to crack down on password sharing.