According to The Wall Street Journal, Netflix will begin cracking down on password sharing in the US in early 2023.
After launching the “extra home” fee in Chile, Costa Rica, and Peru. The streaming platform tested it out in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras this summer. Based on those tests, the new monthly fee is estimated to cost $3 per extra home in the US.
“Make no mistake, I don’t think consumers are going to love this right out of the gate,” Co-CEO Ted Sarandos told investors in December.
As a result, Netflix has reportedly talked about implementing the change gradually throughout 2022. With Netflix losing subscribers throughout this year, the streamer has every reason to push forward. According to some estimates, the initiative could generate $721 million. Thats an set of additional revenue next year in the United States and Canada.
Sarandos describes Netflix’s Basic with Ads plan as a potential “softer landing” for new subscribers. In addition to offering a cheaper alternative to the $9.99 Basic plan. The ad-supported tier excludes users from some of the most popular shows and movies because of licensing restrictions.
With Netflix, users can watch various TV shows, movies, documentaries, and more on their internet-connected, subscribe-based devices. Netflix limits the number of devices linked to a single account and the number of people who can stream content simultaneously from a single charge as part of its subscription terms.
To enforce these terms and prevent unauthorized password sharing, Netflix has implemented various measures to detect and prevent login credentials from being shared. Among these measures are monitoring for unusual streaming activity. Which is requiring users to enter their login information more frequently. Or asking them to provide additional information or contact customer service to verify their account.
It’s worth noting that although they have implemented these measures to prevent unauthorized password sharing. It is still possible for users to share their login information with others. The streaming service has stated that it does not pursue legal action against individuals who share their passwords. If Netflix finds an account violating its terms of service, including accounts sharing login credentials, it reserves the right to terminate the account.