Netflix unveils paid sharing option for multiple profiles on the same account – as the streaming giant plans a crackdown on password sharing “earlier this year”.
- New plans could leave millions unable to watch their favorite shows and movies
- Testing of the feature is already underway, with full rollout expected by the end of March
- What do YOU think of Netflix’s new rules on sharing your account? Email [email protected]
Netflix is rolling out a “paid sharing” option for multiple profiles on the same account as the streaming giant plans a crackdown on password sharing “earlier this year.”
The streaming giant’s plans to change how it uses it could result in millions being unable to watch their favorite shows and movies if they share an account with a friend or family member.
Under the new rules, people who watched Netflix on someone else’s account will have to 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 at the end of March.
What do YOU think of Netflix’s new rules on sharing your account? Email [email protected]
Plans to change how Netflix is consumed could result in millions being unable to watch their favorite shows and movies while sharing an account (file image).
To allow people to share an account, a new option, “paid sharing,” will be added, which allows for multiple profiles but costs less than a full subscription.
Netflix stated last week, “Later in the first quarter, we expect to begin the broader adoption of paid sharing.
“Today’s widespread account sharing (over 100 million households) is undermining our long-term ability to invest in and improve Netflix and build our business.
“We’ve been hard at work developing additional new features that enhance the Netflix experience, including the ability for members to review which devices are using their account and transfer a profile to a new account.
“With the introduction of paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with.”
The change is expected to boost Netflix’s revenue in 2023.
Its chief financial officer, Spencer Neumann, said one of the goals for this year is to “nudge” viewers who use passwords shared by subscribers to pay their own way.
He added, “We have great confidence in our ability to grow revenue throughout the year as we scale ads and roll out paid (account) sharing.”
Netflix ended the past year with 230 million global subscribers and exceeded expectations with hits like “Wednesday” and “Harry & Meghan” attracting new viewers.
The streaming giant said: “2022 was a tough year with a bumpy start but a better ending.”
Netflix ended last year with 230 million subscribers worldwide and surpassed expectations with hits like Wednesday (pictured).
Netflix show Harry & Meghan (pictured) attracted new viewers
Netflix said they added 7.7 million new members in three months
The new titles helped attract users to a new, cheaper Basic with Ads subscription as consumers cut back on entertainment spending amid rising inflation and an uncertain economy.
Revenue for the October-December period was in line with estimates at $7.85 billion.
Netflix insists that counting new users is no longer the most important criterion for assessing the company’s health and that revenue should be the key metric instead.
“What’s potentially getting lost in the mix is that a number of new subscribers — we don’t know how many — are likely to have come in at Netflix’s ad-supported tier,” said Paul Verna, chief analyst at Insider Intelligence.
“That most likely means lower average earnings per subscriber, which is a measure Wall Street will pay more attention to as Netflix’s advertising business grows,” he said.
Netflix faces stiff competition from well-funded rivals, including Disney+, which has also introduced an ad-based subscription.
But despite the challenges, Netflix is one of the rare tech giants to win Wall Street’s trust as its stock price has soared nearly 50 percent over the past six months.
Other tech giants and Disney have been pounded into markets as companies lay off employees and cut costs after a massive hiring and spending frenzy at the height of the coronavirus pandemic.