The world's most extensive streaming service, Netflix, has announced that it will end password sharing this year and introduce an advertising-supported tier for its web-based streaming service. Netflix users who frequently rely on friends and others to watch shows may soon have to pay to access this OTT service. The two new co-CEOs of Netflix, Ted Sarandos and Greg Peters, provided more information about ending password sharing in an interview with Bloomberg.
According to the article, the video streaming service would gradually retain the user experience after introducing controlled password sharing. When questioned about the number of people who would pay for password sharing, Peters responded that the video streaming service would want to retain every one of these customers.
According to the article, the internet streaming platform wants to add 15 to 20 million new subscribers, focusing on countries like India. Additionally, according to the company's shareholder letter, "We anticipate to roll out paid sharing more broadly later in Q1'23. As a result, in 2023, paid net adds will likely follow a significantly different quarterly pattern, perhaps higher in Q2 than Q1.
Netflix is aware that this decision may result in "near-term member growth," negatively impacting areas around Latin America. However, the firm anticipates improved total revenue after "borrower households begin to activate their standalone accounts, and additional member accounts are added,"—which is their objective with all plan and pricing changes.
The primary streaming service is similarly restricting account usage to a single household, but they have improved the user experience with new features. For example, users may now transfer their profiles to other accounts and see which devices are accessing them. Additionally, they will have the choice to pay an additional fee to allow non-household people to use their accounts.
The company said that members in various nations would have the choice to pay more if they want to share their Netflix with people they don't live with as we roll out paid sharing. In addition, all members can watch when traveling on a TV or mobile device, as is the case today.
