Time is ticking for those who still chip in on someone else’s Netflix account to save some bucks.
After a steady growth of multiplying subscribers for more than 10 years, the streaming giant will be putting tabs for password-sharing after a significant decline in revenue was reported in their April 2022 shareholders report.
Netflix revealed that a portion of their 222M subscribers, over 100M are from additional households that utilize their services through shared accounts, where 30M alone come from the United States and Canada.
“Our relatively high household penetration – when including the large number of household sharing accounts – combined with competition, is creating revenue growth headwinds,” as stated in the initial part of the report.
Given the tight spot Netflix found itself in, they decided to monetize what was once its campaign tactic into a whole new policy for a profit bump—paid sub-accounts and the Basic with Ads Tier.
Sub accounts
Despite the “pandemic boom” that pulled in a staggering number of users for Netflix during the plummeting economic years due to the surge of Covid-19, the high only fizzled for so long until the problem revealed itself.
Before their target launch in early 2023, the password-sharing fee system has been in the testing phase in Chile, Costa Rica, and Peru for six months now.
As posted on Netflix’s website, members of the Standard and Premium plans will be able to add what is called “sub-accounts” for up to two people outside their household, where each can create their unique username and password, as well as personalized recommendations.
This feature costs 2,380 CLP ($2.92 USD) in Chile, $2.99 USD in Costa Rica, and 7.9 PEN ($2.13 USD) in Peru, plus the base subscription fee of their $15.50-a-month-Standard plan or the $20-a-month Premium plan.
On the other hand, the Transfer Profile feature covers those who were initially streaming through someone else’s account—users can still keep their “My List”, watch history, and curated suggestions, either to a new account or an “Extra Member” sub account.
Although the prices for other countries are not yet specified, if Netflix were to keep the same tab in its testing phase, then each Extra Member can cost between $3.50 to $4 or more (P203.77 – P232.88 in the Philippines where rates still vary on foreign exchange value) in the US.
Uninterrupted streaming no more?
Contrary to how they advertised themselves as an ad-free binge-watching service that would not make you wait every week for a new episode of its Netflix Original shows, the California-based platform plans to launch its Basic with Ads Tier starting next month on selected countries, excluding the Philippines.
Ever since their success, production houses in Hollywood poured billions of dollars to operate their own streaming platforms. Offering the public a new set of expectations, a cheaper bill (unless you subscribe to everything all at once), and sure enough more options.
According to an article by Guardian published last August, it only took 16 months after the Walt Disney company that aired franchises such as Star Wars and Marvel, Disney +, including Hulu and ESPN+ which comes with the bundled plan, to hit 100 M subscribers—a threshold that took Netflix a decade to achieve.
Other streaming platforms such as HBO Max, Peacock Premium, Paramount Plus, Apple TV Plus, and Prime Video are cheaper than Netflix’s subscription fee, another threat that’s counted in the equation.
In hopes of gaining back lost subscribers, Netflix will be releasing their Basic with Ads plan that will cost $6.99, a $3-cheaper alternative from their Basic plan.
Although it’s cheaper, expect this new tier to break your binge-watching experience every hour with ad breaks lasting four to five minutes each.
If you’re considering this new option, you can check INQUIRER.net’s article that tackled the pros and cons of this plan.
Doubtful response
Five years ago, password-sharing actually used to be the company’s marketing strategy to lure more people into experiencing their services, and without a doubt, it did pay off.
Love is sharing a password.
— Netflix (@netflix) March 10, 2017
However, despite its promising times that brought us Stranger Things, Bridgerton, Queen’s Gambit, and other hit Netflix Original films and shows, people online seem doubtful about these new set of policies and added charges.
Netflix won’t be around after next year once they charge ppl to make sub accounts, like why u worried about ppl sharing they account worry about providing content worth paying for
— Gods Favorite Son🐺 (@KoKaine_Jesus) October 19, 2022
@netflix is destroying what made them in the first place: sharing an account with family and friends. It would be better to limit the number of sub accounts to 3. But this move will end Netflix for me. I join because of futurama, I stayed because they are not Hulu.
— Jefferson JC Baptiste 🌹 (@BaptisteJc) October 20, 2022
Well @netflix it’s been great, I have been a member for a very very long time but ads, fees for sub accounts, extra for 4K? I don’t recognize you anymore. My account is cancelled #cancelnetflix
— Morty Bluth (@danbluthgreen) October 22, 2022
Other POP! stories you might like:
Nobody is a ‘perfect victim’, and no one has to be
Discipline should not require physical abuse, so stop justifying corporal punishment
