Earlier this year, Netflix said that more than 100 million households share accounts worldwide, which equates to about 43% of its entire user base. Besides an obvious negative effect on revenue, the brand said that password sharing is affecting its ability to invest in creating new shows and movies. In an apparent attempt to ease its customers into amnesty, the $7.99 per month fee for additional out-of-household profiles represents a $2 per month discount versus a standalone version of the company’s standard plan.
During a January 2023 conference call, Netflix CEO Greg Peters said, “It’s worth noting that this will not be a universally popular move, so there will be current members that are unhappy with this move. We’ll see a bit of a cancel reaction to that … We think of this as similar to what we see when we raise prices.”
The streaming service hasn’t yet outlined what actions it will take toward members that continue to violate the password-sharing policy. Last month, Netflix announced the demise of its mail-order DVD service on which the company was founded.
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