Users will not be allowed to share their credentials with other users on Netflix. Starting in 2023, Netflix will impose an additional cost on subscribers who disclose their login information to third parties. If Netflix subscribers don’t want to fork up the extra cost, they can choose Profile Transfer.
After adding 2.4 million new customers in the third quarter of 2022, Netflix breathed a sigh of relief. In the first two quarters of this year, the OTT platform experienced its first-ever decrease in subscribers due to the persistently unfavorable economic climate, escalating OTT competition, and rising demand for content. But password sharing was one of the most alarming causes of the decline in the subscriber base. To address this issue, Netflix has decided to impose a surcharge on users who share their passwords.
According to a Netflix announcement, consumers will start paying extra fees by 2023 if they share their accounts with other users. The cost will be included in the billing information as “extra members.” How much subscribers would be penalized by Netflix for disclosing their passwords to other users is currently unknown. However, some data suggest that Netflix will impose an additional cost of $3 to $4.
The new migration tool has also been made available by Netflix for those who don’t wish to pay the additional charge. When someone uses your account, the Migration feature “allows customers to transfer a profile, maintaining the personalized recommendations, viewing history, My List, saved games, and other preferences,” according to Netflix.
According to reports, Netflix lost around 200,000 paid customers during the March quarter and almost 970,000 during the June quarter. The third quarter revenue report reported that Netflix regained 2.41 million customers. Additionally, Netflix has unveiled more affordable ad-supported options to increase revenue even more. The Basic with Ads plan will cost less than standard plans, with 5 minutes of advertising each hour. For instance, in the US, Netflix will start at $6.99 per month (down from $9.99 currently). These plans will be less expensive while still providing high-quality streaming media. They were increasing the number of subscribers as a result.
November 1 will mark the start of the Netflix ad-supported subscription plan in Canada and Mexico, November 3 in Australia, Brazil, France, Germany, Italy, Japan, Korea, the UK, and the US, and November 10 in Spain. Although no such plans have been made public for India, the OTT behemoth is anticipated to introduce them shortly.
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