Netflix will now charge the Fees from People who Share their account
Netflix knows that account sharing is a problem that affects its profits, but the increase in subscriptions in 2020 allowed the company to avoid facing it. With revenue down this year and the platform’s first loss of subscribers in 10 years, the streaming service’s CEO, Reed Hastings, decided it was time to act on this long-delayed issue.
Starting in 2023, Netflix plans to require people who share accounts with people outside their family to pay for it. The platform tested additional payments in some Latin American countries, charging around $3 extra. In those countries, the primary account owner must provide a verification code to anyone outside the household who wants to access the account, with Netflix repeatedly asking for the code until a monthly payment is made to add subscribers outside the home.
As revealed by the Wall Street Journal, Netflix will apply sharing rules across IP addresses, device IDs and account activity starting next year. To avoid losing its customers, the group could phase out account sharing rather than discontinuing it altogether. One of the methods considered was adding paid content, which might encourage users not to share their passwords with people who might rent content, but Netflix ended up not moving forward with that.
It never hurts to remember that Netflix’s terms of service do not allow account sharing outside the home and have not for some time. This is despite the platform having long ignored this situation. However, that will change as of 2023. To date, an estimated 222 million paying households share their accounts with an additional 100 million households that Netflix wants to monetize.
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