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Netflix password sharing begins in the US


The Netflix sign-in page displayed on a laptop screen and the Netflix logo displayed on a phone screen are seen in this photo illustration taken in Krakow, Poland, on January 2, 2023.

Jakub Porzycki | Nurphoto | Getty Images

NetflixPassword sharing ban comes to US

The streaming service said it began alerting members on Tuesday about the new sharing policy, noting that Netflix accounts will only be shared within one household.

“Your Netflix account is for you and the people you live with – your household,” the company said in an email, which it posted on blog on Tuesday.

The email goes on to say that members can transfer a person’s profile outside of their household so that person can start a new membership that they paid for themselves. Or they can pay an additional fee – $7.99 a month – per person outside their home using their account.

On Netflix subscription plans PAGEit says additional members can be added to its standard and premium plans without ads.

Netflix Warned it will tighten its guidelines password sharing in a push to boost revenue and subscriber numbers, soon after the company saw no progress.

What do Netflix plans cost?

Here’s how Netflix works price of its tiers in the United States:

  • Ad-supported plan (2 devices at a time): $6.99/month
  • Basic (1 device at a time): $9.99/month
  • Standard (2 devices at a time): $15.49/month
  • Premium (4 devices at a time): $19.99/month

Netflix was originally expected to launch its crackdown on people borrowing other accounts to create their own profiles late in the first quarter, but respectively investors and customers during an earnings call last month that it pushed it into the second quarter.

The company says more than 100 million households share accounts, which is about 43% of its global user base. As a result, Netflix said its ability to invest in new content has been affected.

Earlier this year Netflix outlined password sharing guidelines in four more countries: New Zealand, Canada, Portugal and Spain. Netflix said it will ask members in those countries to set a “primary location” for their accounts, and will allow users to set up two sub accounts for those who don’t live at home. basis for additional payment.

Read more: Netflix’s anticipated password-sharing crackdown puts college students on edge

In Tuesday’s announcement, the company did not provide such details for US households, and instead provided two options to transfer a profile or pay a fee for an additional member.

The company said it has seen growth in subscribers affected internationally where it has already launched initiatives in the first quarter. But Netflix still managed to add 1.75 million customers in the quarter.

In Latin America, Netflix executives said it saw cancellations after the news was announced, affecting near-term growth. However, password borrowers will later activate their own accounts and add existing members as “additional member” accounts. As a result, the company saw more profits, they said.

Netflix executives have likened the fee-sharing transition to price increases: people initially refuse and cancel, then slowly come back and sign up for their own accounts.

In addition to its crackdown on password sharing, Netflix also recently introduced a cheaper, ad-supported tier in an effort to increase revenue. Both moves came in response shortly after Netflix reported its first subscriber loss in more than a decade in early 2022.

Media companies across the board are looking for ways to make their streaming games profitable, leaning on methods like reducing content costs, advertising and finding other ways to attract more customers to their platforms.

On Tuesday, Discover Warner Bros relaunched its streaming service as Maxwhich is a combination of its HBO Max and Discovery+ services.

Paramount Global ALSO Office has partnered this week that his Paramount + with Showtime combined app will be available in late June. Disney It also recently announced that it is adding Hulu content to Disney+.

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