After years of laissez-faire, Netflix is finally unveiling its plans to crack down on the sharing of usernames and passwords between users, which allows “out-of-home” people to use the same subscription for free.
More specifically, the streaming giant intends to introduce a new service that will add paid sub-accounts labeled “extra member” (additional member) to all people who use the subscription from outside.
“We have found a thoughtful approach to monetize account sharing and will begin to implement it more broadly from early 2023,” Netflix said in a letter to shareholders.
Indeed, the company confirmed this decision last Tuesday, when announcing its quarterly results without revealing the prices.
Remember that this program has already been tested in Chile, Costa Rica and Peru where subscribers paid less than 3 dollars per month to add up to two people, or about a quarter of the price of a “standard” Netflix subscription. .
However, some fear Netflix is facing backlash from its users after years of laxity with this practice of sharing passwords.
“Our experts are skeptical about the chances of success, both from a technical standpoint and from a reluctant user perspective, which has been observed during testing,” noted Third Bridge analyst Jamie Lumley.
At the same time, the leader in SVOD (Subscription Video On Demand) has just launched “profile transfer”, a key feature in its new password sharing monetization policy, which allows anyone who used someone else’s account to transfer their history and preferences to a new independent account.
The company also announced the introduction on November 3 in several countries of its new “Basic with Ads” package. A cheaper subscription, but with advertising.
“This plan represents an opportunity for advertisers with the ability to reach a diverse audience, including younger viewers who are watching less and less linear television, in a premium environment, with a seamless, high-quality advertising experience. resolution,” said Greg Peters, COO.
These ads will be 15 or 30 seconds long and will run before and during shows and movies.
Earlier this year, the California-based platform suffered its first-ever loss of subscribers in a decade, with their numbers dropping by 1.3 million in the United States and Canada and by 1 million globally in the last quarter.
Since then, Netflix has taken a battery of measures to rise from the ashes and revive its activities and it seems to be paying off, as the platform recently hit a new record with 2.4 million additional subscribers joining it this summer. .
“We are done with the quarters in decline”, welcomed Reed Hastings, the co-founder of the group.