Netflix is set to introduce additional charges for users who give their logins to people outside their households.
The streaming giant has been reasonably relaxed about this practise in the past but has decided to enforce additional charges from next year onwards. The move follows reports that around 100 million people worldwide share Netflix passwords with people outside their households.
The measure is already being trialled in parts of Latin America but is expected to come into effect globally in 2023. While the exact cost of the charge is not yet known, it is estimated it will cost around a quarter of an average monthly subscription. The charge will not apply to people who use a Netflix account owned by a person in their household.
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Netflix previously confirmed in a press release: “We will focus on making it easy for borrowers, i.e. people who do not live in your household, 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. We will start rolling out these features more broadly in early 2023.”
The “extra member” feature will likely act as a deterrent for people who allow extended family and friends to use their passwords. Netflix confirmed that the business model would be rolled out in a letter to their shareholders.
The streaming giant faces tough competition in the market due to key players such as Apple TV and Disney Plus. Netflix subscriptions rose in cost back in March, with standard plans now costing households €11.99 per month. Meanwhile, the cost of a premium account went up by €2 and is now charged at a €15.99 monthly rate.
Over two thirds of Irish households use the subscription service, which became increasingly popular during the Covid-19 lockdowns. It has an estimated 600,000 subscribers nationwide.
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