Written By Since Netflix wants its customers to pay for their own subscriptions, it has implemented new restrictions on account sharing.
Users are encouraged to invite their close friends and family to join, but doing so will cost them.
New regulations are going into effect at Netflix to get users to start paying for their subscriptions, which is the next step in the company’s crackdown on account sharing.
These rules will initially only apply in a select number of countries, and account holders will be required to pay a fee in exchange for granting access to their account to third parties.
Netflix claims that 100 million account holders are in violation of their terms of service because they have given out access to their accounts to unauthorized users.
Netflix has always been flexible, and has never been particularly vigilant about cracking down on shared accounts. It has signaled that it will make greater customer pursuit efforts in the coming months despite declining revenues and a renewed focus on growth.
In recent months, it has rolled out its plan to charge users in Canada, New Zealand, Portugal, and Spain. Several countries in Latin America were part of an earlier rollout.
Despite widespread anticipation, Netflix has said nothing about when it plans to roll out its paid sharing model in countries outside the United States. The United States and Canada account for roughly one-third of Netflix’s total subscriber base.
An estimated 231 million people from more than 190 countries are paying members of Netflix. There will be less money for the company to invest in new shows if as many as 100 million households are currently sharing their accounts with others.
On Wednesday, the business announced in a blog post, “Thanks to features like profiles and simultaneous streaming, we’ve made it easy for roommates to share a Netflix account. Questions about the most effective ways to facilitate Netflix collaboration persist despite the company’s widespread success.
On Wednesday, Netflix announced that its members in Canada, Spain, New Zealand, and Portugal would be able to add up to two temporary guests to their existing Netflix account for a monthly fee. The monthly cost in Canada is $7.99, while in Portugal it’s only €3.99.
It was recently announced that users who have been borrowing a friend’s Netflix account will soon be able to request that their viewing history and other preferences be transferred to their own accounts.
As of yet, Netflix has not clarified its policy regarding account sharing between members of different households. Co-CEO Greg Peters gave an update on the rollout in a January conference call with investors.
Remember that some existing members will be dissatisfied with the new arrangement. We can expect a moderately negative reaction to that, “His words. If we raise prices, we anticipate a backlash like that from buyers.
