The report was true: Netflix will be looking for people to pay extra to share their password with someone they don’t share an address with. Shared passwords are about to expire as Netflix implements its new rules before the end of the first quarter of the year, as announced in its latest earnings report.
The terms will be extended in the coming months until the end of the first quarter of 2023, as confirmed by Netflix in its results presentation which also announced that Reed Hastings will no longer be co-CEO. If the forecast is correct, it would mean that what started as a test will now become an official rule in March or April of this 2023.
wall street journal He was the first to anticipate the move. Last December, he reported Netflix’s intention to adjust its account sharing policy “early 2023Now, according to the earnings report, the new rules will allow users to pay more money if they want to share their account with someone they don’t share an address with, though it’s still unclear. That’s how Netflix will track customers’ locations.
We’ve already heard a lot about the ceremony. It was first tested in some Latin American countries such as Chile, Costa Rica and Peru, and soon after Netflix Started testing a feature to transfer content from one profile to anotherWhich is a prelude to the profile migration that will happen after the new rules come into force.
considered a risk
It seems that Netflix is aware that the change is going to cost them some cancellations. The income report details that “cancellation response“In every market, but also expected to benefit in earnings reflect on the long term,
,From our experience in Latin America, we expect some cancellation reactions in each market when we launch the pay-per-share feature, which will impact subscriber growth in the short term.“, read Netflix’s earnings report.
There are some questions that remain on the table, such as whether the rules will start rolling out at the same time throughout Latin America, which would certainly include Mexico. Also pending is what price will have to be paid for each “sub-account” and how much it will vary from country to country. Either way, Netflix isn’t slowing down its effort to crack down on shared passwords, because “Undermining Netflix’s long-term ability to invest in and improve itSays the company.
The engine behind this is pretty understandable when you take a look at the figures: Netflix estimates there are over 100 million households with shared accounts and that’s a lot. to collect a lot of money,