As Netflix subscription rates continue to increase (even if only marginally), more of us are turning to friends and family to help us out. Especially now, when it seems you need five different streaming services just to stay in the loop of pop culture references and entertainment options, we’re approaching it strategically: let us cop the Disney+ fee, while a friend pays for Netflix, a sibling for Stan, a colleague for Binge and Apple TV+. Or, you can always just hope your ex never changes their password so you can enjoy the streaming service for free while mending a broken heart. It turns out the days of sharing Netflix passwords could all soon be over.
As growth on the streaming platform slows, Netflix has instead moved to test a new feature that would charge people to add multiple profiles to an account. Currently being trialled in Chile, Costa Rica and Peru, it’s unknown whether the feature will be rolled out in other countries and if so, when that might come into effect.
According to Netflix’s director of product innovation, Chengyi Long, Netflix has “always made it easy for people who live together to share their Netflix account,” allowing people to create separate profiles on the one subscription. However, “accounts are being shared between households – impacting our ability to invest in great new TV and films for our members,” added Long.
Under the new feature, subscribers who share their accounts for up to two people outside their household will be charged, with current rates set at about $2.98 a month in Chile, $2.99 in Costa Rica, and $2.12 in Peru.
It comes as yet another development by Netflix to crack down on password sharing, an issue the streaming giant has identified as significant, not only curtailing growth on the platform but decreasing financial revenue too. Last year, the company introduced two-step verification as a more subtle approach, but this new charge will mark the company’s strictest crackdown on the practice yet. Back in January, Netflix announced it would increase the price of its most popular subscription from $14 to $15.50, hailing its second price increase in two years. The company also forecast just 2.5 million new subscribers to join the platform in the first quarter of 2022 – its lowest number in years.
What this means for the future of Netflix is uncertain, but as The Guardian reports, “The end of Netflix password sharing is another shift in the company’s strategy that suggests it is looking toward its existing customers, rather than the new subscribers, to help grow the company’s revenue.”
It also raises questions about the future of streaming, as the current competitive stakes in the industry are far from lucrative. Without costs from TV advertisers, password sharing is becoming a growing problem across the industry as it becomes far too easy to get the product without paying for it.
