Streaming giant Netflix has confirmed that password sharing will be discontinued this year and that it would roll out an advertising-supported tier for the online streaming platform.
Now, those who often rely on friends and others to enjoy Netflix will soon need to pay to use this OTT platform. Netflix’s two new Co-Chief Executive Officers (CEOs) Ted Sarandos and Greg Peters revealed further specifics on the termination of password sharing in an interview with Bloomberg.
As per the report, the video streaming platform will not sacrifice the consumer experience after implementing regulated password sharing in a phased manner. When asked how many individuals would pay for password sharing, Peters said that the video streaming platform would aim to win back all of these consumers
The online streaming platform intends to boost its subscriber base by 15 to 20 million, with a concentration on nations such as India, the report said. Also, the company, in its shareholder letter, has said, “We expect to roll out paid sharing more broadly later in Q1’23. We anticipate that this will result in a very different quarterly paid net adds pattern in 2023, with paid net adds likely to be greater in Q2’23 than in Q1’23.”
Netflix is aware that following this move, it might see some ‘cancel reaction’ in Latin America across markets and it may impact “near term member growth.” But once “borrower households begin to activate their own standalone accounts and extra member accounts are added,” the company expects to see better overall revenue—which is their goal with all plan and pricing changes.
The streaming giant is also limiting account use to one household, but they have added new features to improve the experience. Users can now check which devices are accessing their account and transfer profiles to new accounts. They will also have the option to pay extra to share their account with non-household members.
“As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with, the company said. And, “as is the case today, all members will be able to watch while traveling, whether on a TV or mobile device.”
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