The company has been testing for a while in certain markets, particularly in Latin America, features that would allow it to give access to its account to additional people for a fee.
We plan to roll out paid sharing more broadly later in the first quartercan we read in the Netflix report.
The platform had a tough time in 2022, seeing a drop in signups for the first time in 10 years, in the first half of the year.
However, the company has since recovered, and is optimistic in the context of its results released yesterday.
This widespread account sharing practice harms our ability to invest in and improve Netflix, says the report. More than 100 million accounts will be involved, while the platform has 230.75 million subscribers.
Although our terms limit Netflix use to one household, we understand this will be a change for members who share their account with more people. During
lobbyNetflix you hear about people living under the same roof.
We’ve worked hard to create new features that improve the Netflix experience, including the ability for members to check which devices are using their account, and the option to transfer a profile to a new account.
Retreat before rebounding
The company anticipates that the fight against joint accounts may cause a temporary drop in the number of people using the platform, but it expects a gradual recovery, based on what has been seen in Latin America, where the tests were conducted.
The financial report doesn’t provide technical details on how the ban on sharing accounts outside the home will be enforced, but does confirm that all members of said family will be able to use Netflix while traveling.
The streaming giant tested the means of coercion in 2021 by sending out a notification asking people trying to access Netflix to verify their accounts by emailing or texting a code to the contact details listed on the profile.
It’s also unclear how much it would cost to add someone else to their account, but the cost was less than $5 in the South American markets.
Separately, Netflix co-founder Reed Hastings announced Thursday that he is stepping down as CEO, while remaining with the organization as chairman of the board.
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