It was a long time ago, but at the moment it’s only implemented in Canada, New Zealand, and Spain – and it looks like it’s going to be delayed some more. Reason for not using common codes in Netflixwhich was rescheduled for the second quarter of 2023.

Codeshare fees should already be in place in the US (perhaps Netflix’s biggest market) and three other markets by the end of March. The company has now announced in a letter to shareholders that its paid code-sharing service will be discontinued by the end of June.

The reason is “backlash” (the exact term used was “cancel reaction”) that existed in this service in countries where it has already been implemented, such as Canada, New Zealand and Spain. For example, in Canada, each additional member using the same account is charged CAD 7.99 (i.e. €5.44).

The company acknowledged that the measure was detrimental “in the short term” in terms of subscriber growth in countries where it was implemented. However, this was offset by increased revenue and subscriptions as those who “borrowed” accounts eventually decided to create their own.

According to Netflix, about 100 million households around the world share their passwords to the subscription service. Morgan Stanley estimates that Netflix can turn around 20-30% of them into subscribers.

“This collaborative account aims to build a larger base of potential members. That’s why we focused on this,” said Ted Sarandos, one of the company’s two CEOs.

Netflix expects the delay in the introduction of the codeshare payment service to have a small impact on its earnings in the second quarter, although it is expected to recover starting in the third quarter.

As for the cheapest subscription service with ads, the company said that most customers prefer to pay for more expensive subscriptions without ads.

According to FT, Business Insider

⇒ News today

Subscribe to kathimerini.gr on Google News and be the first to know all the news

See all the latest news from Greece and the world at kathimerini.gr