Share a Netflix account with others outside your home? You are not alone, and Netflix is not happy about that. The company is currently charge its account holder $7.99 for each additional user.
in detail letter to shareholders Last month, Netflix explained its plan to roll it out widely, including in the United States, as a plan to grow its paid membership base, thereby increasing profits, rather than reducing these metrics.
Now, that time has come.
Also: Best Netflix Alternative: Binge Watching Elsewhere
Netflix started sending emails to account holders whose membership is being shared with someone outside of their household. In the email, the company explained that users outside of the member’s household will have to switch their profile to the new paid membership, or account holders can add $7.99 to their monthly bill. theirs to continue sharing.
Paid Share has been released in the first quarter of 2023 in Canada, New Zealand, Spain and Portugal. “In Canada, which we believe is a reliable predictor for the US, our premium member base is now larger than it was before the rollout of paid sharing, and revenue growth has increased. and is now growing faster than in the United States,” the letter said.
Also: Best Roku TV Player: Compare Roku Ultra, Express, Streambar, etc
When a paid member transfers someone’s profile to a new member, someone outside the account holder’s household will have to pay for their own subscription to be able to keep their viewing history and listings. them, as well as all other pertinent information from their profile.
This rollout comes after paid sharing trials conducted in Latin America in 2022 were successfully carried out by Netflix, despite reports claiming that the company lost nearly a million subscribers the result is.
Also: The best video streaming services: Netflix vs. Hulu vs Disney+ and more
Netflix explained that it saw initial cancellation reactions in each of the three countries it tested the paid sharing program in when the news was announced. But then it saw an increase in purchases and revenue as “borrowers” activated their own premium accounts and existing members started adding additional shared accounts. fig.
“In the long run, paid sharing will ensure a larger revenue base from which we can grow as we improve our service,” Netflix added.
Netflix reports current account sharing has reached more than 100 million households among subscribers. “Wide account sharing undermines our ability to invest in and improve Netflix for our paid members and build our business,” the company said in the letter.
Also: Best TV antenna for better reception
The original plan was to roll out the paid sharing program widely in the first quarter of 2023, but the company decided to delay the initiative. “We’re pleased with the most recent launches of paid sharing, and while we could have rolled it out broadly in Q1, we found an opportunity to improve the experience for members,” the letter read.
Now that Netflix has rolled out paid sharing for US accounts, you’ll have to set the primary location for your account and anyone else using your Netflix subscription outside of your location. This will forfeit access, unless you choose to pay additional membership fees. You can still sign in to your account on your new phone or tablet or TV at your rental or hotel.
Changes to Netflix advertising plan
The streaming service company also announced some changes to Its new advertising plan back in April, allowing users to pay lower prices for Netflix subscriptions that include ads. In the letter, the company reports average revenue per member (ARM) for accounts with ads, including subscription fees and ad revenue, higher than the standard plan.
Also: The best live TV services: Watch sports and news without cable
Realizing good revenue and less need to switch to ad-free subscriptions, Netflix is improving the experience for its ad bundle to include 1080p video quality, up from 720p and two simultaneous streams.
