Netflix has announced that it now wants to charge users who share their accounts with other people in different households. The move comes as the streaming giant wants to crack down on password sharing. This will prompt users to pay additional fees if they use an account outside of their residence.
According to the company, the new modality will be available from August 22 and will have a value of $219 plus taxes for each extra house for users from Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic. In Chile, Costa Rica, and Peru the change had already been implemented.
Some users chose to highlight the fortune of other digital content platforms, which hope to absorb disgruntled Netflix subscribers. According to the company’s latest earnings report, released in April, Netflix lost 200,000 subscribers during the first quarter of 2022.
Testing the feature by Netflix:
The streaming giant will start testing the feature in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras next month.
In these test regions, each streaming giant account will include a home where it will be possible to access Netflix on any of the devices. If the account owner wants to share their password in an additional house, the company will ask them to pay a fee.
Users in these test areas will have the ability to control where their account is used and to remove homes from their account settings page.
“It’s great that our members love Netflix movies and TV shows so much that they want to share them more widely,” Netflix Product Innovation Manager Chengyi Long said in a statement. “But today’s widespread account sharing between households compromises our long-term ability to invest and improve our service,” he added.
Netflix uses information o provide its service to its consumers today:
Netflix had stated that its solution did not rely on location data such as GPS in its description of the solution. Instead, it makes use of the same information that it makes use of in order to provide its service to its consumers today.
This information includes an IP address, device IDs, and other information regarding the many devices that are connected to the streaming giant account across the home. Netflix estimates that around 100 million households worldwide share their user accounts, and more than 30 million of those are in the US and Canada alone.
Netflix hopes to strike the right balance between enabling sharing while helping to generate revenue from all who watch and profit from its service. These tests aren’t the only way Netflix plans to monetize its subscriber base, as the company has also announced that it will introduce an ad-supported plan.
Last week, Netflix announced it was teaming up with Microsoft as a “global advertising technology and business partner” to help the streaming service generate revenue through ads.
Another joke that circulated on the networks referred to the migration that consumers are going to make to pages that publish, in an unauthorized manner, audiovisual content, in order not to pay extra amounts in the monthly subscription. In a similar vein, other users pointed out the shortcomings that the streaming giant has in the catalog of movies available to watch online.
Layoffs due to loss of subscribers:
At the end of June, the streaming giant laid off 300 employees, mostly from the United States and Canada, to adjust their accounts after the loss of subscribers that it has been accusing since the beginning of this year. “We are sorry that we did not see our slowdown earlier, so we could have ensured a more gradual readjustment of the business,” the company said in an official statement.
This is the second series of layoffs for the company, which in May had already laid off another 150 employees after its shares sank as it acknowledged to investors that its growth had stalled.
Despite the bad situation, the company promised that in the next year and a half its staff could grow again by more than 1,000 new jobs, although it did not specify which areas will benefit from this growth.
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