Despite stiff competition, Netflix is settled as platform giant streaming with more than 220 million subscribers worldwide.
According Business Insiderabout some 100 million “additional households” enjoy the entertainment service through a shared password.
Such activity was not something that the company seemed to care about. In fact, in the past, even encouraged account sharing through their social networks.
However, after losing users for the first time in a decade last quarter, coupled with falling profits, the company will take measures to control this practice.
The measures that Netflix will adopt to control the sharing of passwords
To this end, last March, the platform began testing a new strategy in three Latin American countries: Chile, Costa Rica and Peru.
The feature allows users add accounts for a maximum of 2 peoplewho may not live under the same roof, but it will not be for free, but for paying an extra monthly fee.
According Xataka, the cost for a subaccount was between 2 and 3 dollars per month in the previously mentioned nations.
The goal is that the account owner cancels an additional charge for each attached user, which will allow the company to compensate for the loss of profits due to this practice.
Netflix COO, Greg Petersexplained it like this: “If you have a sister, say, who lives in a different city, and you want to share netflix with herThat’s great”.
“We are not trying to close that exchange” clarified in the presentation of quarterly results. “But we are going to ask you to pay a little more to be able to share with her”.
“And for what get the benefit and value of the service, but we also get the revenue associates with that visualization,” he added, according to Business Insider.
What would Netflix subaccounts look like?
The execution of this measure, according to Xataka, it will cause no real sharing to occur. And it is that the subaccounts not only they would have their own profile and recommendations.
The website indicates that these associated subscribers also they would have your own username and passwordwhich would be different from those of the account holder.
With this decision, the company would seek to facilitate that attached users more easily migrate to normal user status if they decide to be and pay for the total service.
Both your viewing history and your content list, among other data about your activity on the platform, would be synchronized with that new own and independent account.
When will this measure take effect?
Netflix He has not yet specified how much he estimates to earn with the tactic, but it did advance the date for the entry into force of the function that threatens the survival of shared accounts.
According to Peters, the implementation of these changes, which will allow the company to monetize password sharing much better, will be given worldwide in 2023.
“We are trying to find a balanced approachPeters stated in his letter to shareholders, reproduced by Business Insider.
“To set your expectations, I think we’re going to spend a year or so iterating and then implementing all of that so we can release that solution globally, including markets like the United States.
“As we work to monetize the exchange, the growth (of average membership income), revenue and viewing will become more important indicators of our success than membership growth,” he said.
It is noteworthy that a study by Time2Playcollected by CNBCthrew that 80% of Americans who use Netflix with someone else’s password they would not open an account of their own.
Then it can be concluded that the giant would not register new users if they removed the option to share the pit account and the proposed measure seems to be the only solution so far.
Of course, there are still many unanswered questions about itbut surely, they will become clearer when the plan goes into operation globally next year.