The steps are quite justified considering that the OTT platform incurred heavy revenue losses due to the password-sharing scenario going on all over the globe. The company has not confirmed the timeline for levying the charges, but it has said that the same will come into effect by next year. A public announcement for the password-sharing charge is still awaited. Nonetheless, Netflix suggested while sharing its quarterly revenue that it will charge accounts if they share a password with an ‘extra member’ be 2023. In the quarterly earning reports, Netflix officials said that the brand had finalized a thoughtful approach to charge for account sharing, and it will come into action by early 2023. It was further mentioned that after keeping the feedback regarding password sharing in mind, Netflix has decided to allow sharers to manage their devices and even create sub-accounts for ‘extra-member,’ which includes family and friends. Speculations are that this step will boost the revenue of Netflix overall, especially in the countries where it offers ad-supported plans at cheap rates.
What else is in the works?
Recently, Netflix announced the Profile Transfer Feature that will let users, who are sharing passwords, break into a separate account without losing any data like the viewing history and saved movies and shows. The feature has started working out for users all around the globe, and they will get notified regarding the same via email. When the feature is combined with the extra member charges, it will completely eradicate the issue of password sharing and the losses that come coupled with it.
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