The days of sharing Netflix accounts with your friends are over. The streaming service is reportedly cracking down on people who piggyback on others' accounts.
Sharing Isn't Caring
On Tuesday, Netflix announced in its quarterly earnings report that it would “shortly” be charging an extra monthly fee to people to have shared their usernames and passwords.
The decision follows a pilot program that was rolled out in Latin America. The program charges extra fees for what they deem to be “extra user” subaccounts. These are people outside of your household that are logged into your account.
In the report, the streaming service stated, “Finally, we’ve landed on a thoughtful approach to monetize account sharing and we’ll begin rolling this out more broadly starting in early 2023. After listening to consumer feedback, we are going to offer the ability for borrowers to transfer their Netflix profile into their own account, and for sharers to manage their devices more easily and to create sub-accounts (‘extra member'), if they want to pay for family or friends. In countries with our lower-priced ad-supported plan, we expect the profile transfer option for borrowers to be especially popular.”
The report came along with the company's first quarterly subscriber loss in decades. The new program is an attempt to resume growth and smooth things over with investors.
Thanks to Monster: The Jeffrey Dahmer Story and Stranger Things Season Four, the company was able to add around 2.4 million subscribers in the third quarter.
Each name in your “Who's Watching” list will cost you extra if they do not live with you. Netflix has not yet announced how much they will be charging for extra users. If it follows the pilot program in Latin America, the cost will be one-quarter of the basic rate. That would work out to be an extra $3-$4.
Users will have until early 2023 to delete any extra people off of their accounts before the charges hit. The extra charge feature has already been rolled out in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras.
The previous program allowed you to “add a home,” which was launched in August. Each account was allowed one home. This program allowed users outside the home to stream on any of their movile devices as long as their profile was under the primary user's “home.”
There was also an option to buy additional “homes.” This program was the first of Netflix's attempts to crack down on password sharing.
Users can watch Netflix on their phones or tablets at any time as much as they want, even if they are traveling, but if they want to stream on a TV, they will only be able to do so for two weeks before they will incur an extra charge.
Netflix also announced a less expensive, ad-supported subscription option that will cost $7/mo. It will launch on November 3rd.
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This article was produced and syndicated by Wealth of Geeks.
Max Marvelous has coached over 250 Millennials to help take the stress out of money. When Max is not coaching, you'll find him reading financial books, indoor cycling, or visiting local pawn shops looking for swiss-made watches.