Netflix launched its new policy in February in four locations, including Canada and Spain, after testing account-sharing fees in Latin America the previous year.
It’s now here for many American subscribers, and they haven’t been waiting long. At the end of June in the second quarter, password-sharing fees will be implemented formally.
Netflix Subscribers And Their Fees Based On Their Country
In a letter to shareholders on Tuesday, the streaming service announced the change, but it did not specify how much it will charge for password sharing in the US.
If a Netflix user shares their password with someone who lives outside of their home, they will be charged for each additional account.
Only users with Standard or Premium subscriptions can add other members, with a limit of two per account, in the nations where paid sharing has already begun to roll out.
Users who do not reside in the household of a paying member will be blocked from the site and given the option to register their own accounts and transfer their profiles.
According to Netflix, its paid member base is expanding and is greater than it was before the introduction of account-sharing fees in Canada.
The business is certain that similar outcomes will be obtained in the US.
But, Netflix co-CEO Greg Peters stated on Monday during the streamer’s quarterly investors call that the company is still deciding how much to charge.
Netflix forced users to designate a preferred location for their accounts when it revealed its plans for the password-sharing crackdown in February.
The ability to watch videos on demand while traveling will still be available to subscribers.
Consumers in Canada are required to pay $8 CA each additional user per month.
The cost is 6 euros in Spain, 4 euros in Portugal, and $8 in New Zealand.
According to those figures, Netflix is anticipated to charge US members between $7 and $8 each subscription.
The decision, which comes after the streaming giant raised the costs for its most popular subscription levels in 2022, has caused controversy.
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New Subscription Plan
As the new fees go into effect, several customers threatened to cancel their accounts.
Others voiced worry that their parents, college-age children, and other family members in the military may lose access to their subscriptions.
Following a decline in member counts in the first quarter of 2022, Netflix has concentrated on finding new revenue streams for its service.
The business introduced Basic with Advertising in November; it is a $7 monthly tier that has one stream and is sponsored by ads.
In addition to the new subscription plan, the firm attributes higher viewing and subscriber numbers to the seasons of TV shows like Wednesday, Outer Banks 3, and Ginny & Georgia 2.
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