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Netflix is changing its password-sharing policy and will start charging users to share accounts. Currently, Netflix account holders can add up to 5 profiles to their account. These profiles will become paid sub-accounts from early 2023.
Netflix will only allow one "home" per account, and additional homes will have to pay extra to use the same account. Although you can still use Netflix outside your physical home - on your tablet, laptop, or phone - it will technically be one account, to which you can add sub-accounts to.
This model has already been implemented by the streaming platform in Argentina, the Dominican Republic, Honduras, El Salvador, and Guatemala. Customers in those countries pay an extra $2.99 per month to add additional homes to their accounts. It was not stated whether Netflix would charge the same price in the U.S.
It is expected that Netflix will begin rolling out these features to a wider audience in early 2023. Basic plan members can add one extra home, standard plan members can add up to two extra homes, and premium plan members can add up to three extra homes.
Borrowed Netflix passwords can be transferred to a new account. Thus, they will be able to view their viewing history and recommendations on their new account.
Netflix's COO and Chief Product Officer Gregory Peters discussed the profile transfer during Tuesday's earnings call. In other words, you can imagine that there are some circumstances in which you might have a child at home who is going to become an adult and get their own account, and that supports those situations," he said.
The new model allows people who share passwords to easily create and manage sub-accounts. Additionally, account owners will be able to pay for Netflix for someone they want to share the service with, Peters said. The idea is that they will be able to create a sub-account, which we call extra member, to enable that model as well."
In 2023, Netflix will not only begin charging for sub-accounts but also for subscriptions. Customers will have the option of paying for a basic version of the streaming platform that costs less but comes with advertisements if they wish to do so. It is anticipated that the "Basic with Ads" option will attract numerous new members and will lead to a significant increase in revenue and profit.
In the U.S., the Basic with Ads plan will launch in November for $7 per month. 55% less than Netflix's most popular ad-free $15.50 plan.