Netflix could charge for password sharing in Q1 2023


Fasiha Nazren | January 26, 2023, 03:02 PM

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If you're sharing your Netflix account beyond your household members, here's some news for you.

Netflix is expecting to start rolling out paid sharing more broadly in Q1 of 2023, according to the streaming service's letter to shareholders, dated Jan. 19, 2023.

The company's terms of use limits the use of Netflix to a household.

However, in a newsletter from March 2022, Netflix said that it has "created some confusion about when and how" Netflix can be shared. This results in accounts being shared between households, which impacts its "ability to invest in great new TV and films for our members".

Additional cost

Netflix has trialled the paid sharing initiative in these Latin American countries: Chile, Costa Rica and Peru.

If you're wondering how paid sharing works, members on Netflix's standard or premium plans will be able to add sub accounts for up to two people they don't live with.

These additional sub accounts will have their own profile, personalised recommendations, login and password.

This is how much it costs:

  • Chile: 2,380 pesos (S$3.89)
  • Costa Rica: US$2.99 (S$3.92)
  • Peru: 7.9 sol (S$2.67)

Users can also transfer their profile to a new account.

Cancel reaction

In the letter to shareholders, the streaming service said that it will expect some "cancel reaction" in each market when they roll out paid sharing.

"As we work through this transition – and as some borrowers stop watching either because they don’t convert to extra members or full paying accounts – near term engagement, as measured by third parties, like Nielsen’s The Gauge, could be negatively impacted."

However, Netflix believes it is a worthwhile move overall.

"But as borrower households begin to activate their own standalone accounts and extra member accounts are added, we expect to see improved overall revenue, which is our goal with all plan and pricing changes."

The company anticipates a similar pattern to what they've seen in the Latin America market, with engagement growing over time.

Top image from Netflix.