Why It’s Happening Move
It said that out of the 222 million pay-paying households across the globe the company estimates that it is part of more than 100 million households.
The result is the loss of revenue.
It has recently announced that for the first time in the past decade they lost 2 million subscribers.
In the end, the share price also fell to an all-time record low.
The streaming giant isn’t going to stop sharing accounts.
How Does It Work
Instead, it will charge an additional fee for accounts used by multiple individuals who are not in the home.
This implies that multiple logins coming from the same geographical location are likely to get frewe from the additional cost.
Prior to implementing this process, it will issue an alert to those who have passwords that are used by other households.
It is currently testing the system by conducting tests in Peru, Costa Rica and Chile.
In these markets, it has released two tests featureswhich are “Extra Members” along with “Profile Transfer.”
With “Extra Member”,” premium and standard plan customers can get an account to two persons who aren’t their family members.
If a person who doesn’t live in the same house is sharing an account for instance, distant relatives or even friends The user will need to pay for additional access.
“Profile Transfer” feature “Profile Transfer” feature lets subscribers from any account to migrate their profile data including their browsing log — onto a brand new paid account.
The company will charge an additional fee for the addition of “sub accounts” for two individuals outside of the home.
Pricing varies per country — approximately $2.13 each month for Peru, $2.99 in Costa Rica in addition to $2.92 for Chile.
Will Take One Year
Chief Operating Officer Greg Peters explained the move.
He stated that for anyone sharing an account another person, for instance, in another city the additional cost has to be paid in order to allow the sharing of the account.
According to him, the user who is sub-enrolled is the one who benefits from the benefit of the service, however, Netflix also earns the money related to that watching.
The first Site for OTT
He stated that it would take approximately a year for the company to bring its sub account pricing globally in use.
By doing this, Netflix has become the first major streaming company to take a stand against sharing passwords.
Other streaming platforms will probably sit and watch the developments with Netflix before deciding to implement similar plans.