Netflix, the streaming platform with the largest number of subscribers in the world, will this year launch its own campaign to stop the practice of password sharing to prevent multiple users on a single account. The platform will apparently nudge customers to pay more if they are found to have shared their account with people outside their household.
The company said in October that it would have “a thoughtful approach to monetizing Account Exchange, expanding beyond its initial test markets in Latin America,” the platform said in a statement, according to information obtained from the Business Today portal. This would encourage password sharers to create sub-accounts (“additional members”) and pay for people outside their households.”
– The Wall Street Journal (@WSJ) January 15, 2023
The Platform will apply fees for additional Member Sub-Accounts. The fee will apparently be 23% to 29% of Netflix’s standard two-stream plan, where it reportedly operates in Chile, Costa Rica and Peru. According to the same portal, Netflix’s more aggressive intent in its earlier launch of shared payments will continue to pressure offenders with reminders and email notifications.
These decisions would lead to a 26% drop in shares due to the loss of 700,000 customers following the suspension of service in Russia due to the war with Ukraine. In the second quarter of 2022, the company lost around one million subscribers. As a result, a US$40,000 million loss was reflected in the value of the stock market.