The streaming giant announced that he would start banning her password exchange in the first quarter of this year, following the presentation of the company’s diluted earnings to shareholders in the fourth quarter of 2022.
The practice of exchanging passwords with people who do not live with the subscriber will become more complex and may incur additional charges for sharing the subscription across locations.
“As we expand paid sharing, members in many countries will also be able to pay extra if they want to share Netflix with people with whom they do not live in the same house. As before, all members will be able to watch from a mobile device while traveling,” Netflix said in a shareholder announcement.
How it will work
Netflix hasn’t said anything more specific than “later in the first quarter of 2023” about when the ban will begin. The company’s Chief Innovation Officer, Chenggi Long, explained how the new system might work. Each Netflix account will only be allowed one home, but the platform can be used on multiple devices. Adding additional households will require an additional monthly fee (in most Latin American countries where the concept was first piloted, the fee is $2.99). While traveling, the account will only be accessible from a tablet, laptop or mobile phone. Subscribers will be able to remove unwanted households from their account.
“The widespread use of account sharing between households today undermines our long-term ability to invest and improve our services,” Mr. Long said.
“That’s why we’re carefully looking into different ways for people who want to share their bill to pay a little more.”
In 2022, Netflix lost 200,000 customers in the first quarter alone and admitted it expects to lose another two million in the second quarter. The company attributed the decline to several factors, including increased competition and the war in Ukraine.
Long did not reveal how Netflix plans to implement the new system. In tests conducted in Latin America, if a location change is detected for an account that has been in use for more than two weeks, the owner receives an in-app notification that gives them the option to change their home address or pay a fee. add a new address.
Source: Kathimerini
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