About one-third of U.S. subscribers to Netflix share their login credentials with others, according to new data from Leichtman Research Group.
16.03.2022 - 21:25 / deadline.com
Netflix is testing an extra fee for subscribers to share their login credentials outside of their own households.
The plan is being tried out in Costa Rica, Peru and Chile. Adding an extra subscriber will cost 2,380 Chilean Pesos, or $2.97; $2.99 in Costa Rica; and 7.9 Peruvian Sol, or about $2.11. The company said it will take time to evaluate results in the three initial countries before considering a wider rollout of the fees.
The long-expected curb on password-sharing comes as Netflix faces a bumpier road in terms of adding subscribers and more competition than ever in the U.S. and, increasingly, around the world. With 222 million global subscribers, the company says it is just a fraction of the way to the total addressable market, but making money from those subscribers will be increasingly challenging as the service matures, as is the case in North America. Price increases have been implemented in the U.S. and Canada recently, and a crackdown on password sharing is another lever Netflix can pull.
In a blog post, product innovation director Chengyi Long wrote that Netflix has”always made it easy for people who live together to share their Netflix account, with features like separate profiles and multiple streams in our standard and premium plans.”
Over time, she added, that functionality has “created some confusion about when and how Netflix can be shared. As a result, accounts are being shared between households – impacting our ability to invest in great new TV and films for our members.”
Along with the option to pay to share passwords, the company is also letting subscribers who pay for the account extensions to let the newer subletters transfer profile information, including viewing history and other personalized
About one-third of U.S. subscribers to Netflix share their login credentials with others, according to new data from Leichtman Research Group.
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Netflix has announced plans to test a feature which would charge people for sharing accounts outside their household.As revealed in a blog post, the test will roll out in Chile, Costa Rica and Peru over the next few weeks. During the test, subscribers will be able to add sub accounts for up to two people they don’t live with at the price of $2.97 in Chile, $2.99 in Costa Rica and around $2.11 in Peru.A statement from Netflix’s director of product innovation, Chengyi Long, reads: “We’ve always made it easy for people who live together to share their Netflix account, with features like separate profiles and multiple streams in our Standard and Premium plans.“While these have been hugely popular, they have also created some confusion about when and how Netflix can be shared.
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