by Juli Clover
Netflix is planning a “wide rollout” of the password-sharing measures it began implementing in 2022, according to the company's 2023 Q1 earnings report [PDF].
The “paid sharing” plan that Netflix is testing in a limited number of countries will expand to other countries in the second quarter. including the USA. Netflix said it was “pleased with the results” of password sharing restrictions that were introduced in Canada, New Zealand, Spain and Portugal earlier this year.
Netflix originally planned to start removing password sharing in the US in first quarter of the year, but the company said it learned from its tests and “found opportunities to improve the experience for participants.” In every market where a paid exchange has been implemented, a “cancellation response” is expected, but revenue increases come later as borrowers activate their own Netflix accounts and existing members add “additional member” accounts.
In Canada paid-sharing led to an expansion of Netflix's membership base and accelerated revenue growth, giving Netflix the confidence to expand its operations in the United States.
When Netflix introduces its pay-sharing rules in the United States, multi-Using a home account will no longer be allowed. Netflix subscribers who share an account with those who don't live with them will have to pay for an additional member. In Canada, Netflix charges CAD 7.99 per additional member, which works out to about $6.
Prices are per person and up to two additional people can be added to an existing Netflix Standard or Premium plan. For an additional fee, each person is provided with a profile, personal recommendations, login and password. Additionally, people who currently share a Netflix account with someone outside of their household can initiate a profile transfer process that will allow the person with free account access to create their own separate paid account.
Netflix users will be required to set a primary location, and subscribers who are not in that location will not be able to use the service through this account. There are travel or second home discounts, with Netflix requiring users to open the Netflix app at their primary location once a month.
Netflix claims over 100 million households use shared accounts, which impacts its possibilities. to “invest in and improve Netflix” for paid members.
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