On Tuesday, officials from Netflix Inc. (NFLX stock) outlined their strategies for preventing customers from sharing their accounts on the streaming service when it launched early in 2019.
Netflix (NFLX stock) officials said that they will provide users who are currently using other people’s accounts the opportunity to convert that profile to their own subscription in a letter to shareholders in connection with the release of their third-quarter results. Additionally, they will give account users a choice to create “subaccounts,” paying extra to let others use their Netflix subscription.
The letter states, “We’ve settled on a considered method to commercialize account sharing, and we’ll start rolling this out more generally starting in early 2023.” “After taking into consideration customer feedback, we are going to give the possibility for borrowers to move their Netflix profiles into their own accounts, as well as for sharers to manage their devices more simply and to form subaccounts (“extra member”), if they wish to pay for family or friends.
The strategy sounds a lot like the trials Netflix ( NASDAQ:NFLX ) has been conducting in Latin America since executives declared earlier this year that they would try to curb password sharing. In that trial, users were allowed to watch Netflix (NFLX) in a single house, but they had to pay an extra $2.99 for any additional home where they wanted to stream content from their Netflix account.
Executives at Netflix ( NASDAQ:NFLX ) have long known that customers frequently share their passwords, allowing others to use the streaming service for free. Despite this, they said they were not concerned about the practice. That changed earlier this year when the business revealed its first year-over-year loss in customers. At the time, management predicted that around 100 million homes were using the service w...
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