Bad news for Netflix freeloaders: Password sharing will be ‘banned’ at the end of March – and it will affect at least 100 million viewers
The moment Netflix’s “freeloaders” have long feared will soon arrive – password sharing will be banned at the end of March.
The company shared the news in a letter to shareholders, noting that its “widespread account sharing” has reached more than 100 million viewers.
However, these individuals can transfer their profiles to a new paid account so that they can transfer their preferences.
Netflix said 2022 was a “difficult year” due to its first subscriber loss in more than a decade – its customer base fell by 200,000 subscribers in the first quarter.
Netflix told shareholders it will stop sharing accounts with users by the end of March. The move comes as more than 100 million people watch the platform for free
“Today’s widespread account sharing undermines our ability to invest in and improve Netflix over the long term, and to build our business.” the company said in its letter.
However, Netflix is aware that some users will cancel their accounts, but those who share can transfer profiles if they choose to open their own accounts.
“We think the pattern will be similar to what we’ve seen in Latin America, with engagement growing over time as we continue to deliver a great lineup of programming and borrowers sign up for their own accounts,” the company said. to the shareholders.
Netflix has been working to bring in more revenue, all while focusing on consumers.
In November 2022, the company launched a “Basic with Ads” option for $6.99 per month, compared to the ad-free version for $9.99 per month.
Ads, which are 15 or 30 seconds long, play before and during shows and movies.
And in the run-up to its recent password-sharing ban, the streaming service revealed plans for a paid sharing option.
This is for multiple users on the same account.
Under the new rules, people who watch Netflix with someone else’s account must create their own logins and pay for their own access.
Testing of the new feature is already underway, with a platform-wide rollout expected to take effect by the end of March.
To enable people to share an account, “paid sharing” is added, which allows for multiple users but costs less than a full subscription.
Accounts already have five ‘profiles’, but they are for use only by members of the same household.
Each account comes with five profiles that can be used by each family member.
The new option comes as people want to share their Netflix accounts with friends and family who live elsewhere.