Netflix has recently implemented new rules regarding password sharing, and it’s possible that the cost of the streaming service may increase for customers who wish to keep sharing their accounts.
Earlier this year, Netflix informed its users in the U.S. about these changes and sent emails to customers who were sharing their accounts with people outside of their households.
Subsequently, they introduced paid sharing options in approximately 100 countries, which account for 80% of their revenue. In a letter to shareholders published in July, Netflix stated that revenue in each region where password sharing has been restricted has increased, with more sign-ups than cancellations.
This issue of password sharing has become a widespread problem in the streaming industry, affecting other services like MultiChoice Group’s DStv, which has also implemented paid subscriptions for profile sharing.
Netflix has announced that sharing a profile with someone outside of the same household will incur a cost of $7.99, in addition to the existing subscription fee. In South Africa, the rate for this service is R143, excluding sales taxes and currency conversion fees.
The implementation of this new policy aims to assist Netflix in gaining 5.9 million paying customers from April 2023 to June 2023.
