A few weeks ago Netflix announced a drop in subscribers and revenue. In order to lift this situation, the most popular streaming company in the world evaluated a series of changes that would include a penalty for those who share passwords. And this change could come soon.
Netflix had already been commenting that it had a problem with users who share keys to login. This, logically, results in less economic benefit. Once the report came out, co-CEO Reed Hastings even considered introducing ads to the platform, saying he would try to figure it out in the “next year or two.”
According to the New York Times, a recent memo to employees said that executives now aim to introduce the ad level at some point in the last three months of 2022with strong measures against password sharing to the same extent.
That is 2023 could already befor all, the year in which Netflix sanctions for sharing keys.
The move would not be just for Netflix, they warn. Disney Plus announced its own intentions for ad-supported streaming in March. The Times said the story specifically mentions the fact that all of Netflix’s streaming competitors, with the exception of Apple TV Plus, offer or advertise ad-supported streaming levels.
When Netflix announced its new focus on password sharing, analyst Richard Greenfield of LightShed Partners told The Verge that this could be the way to close a gap of 10 million to 20 million additional customers in the US.
Netflix has been testing this system that it will apply this year. In March of this year, the streaming platform began testing a new feature in Chile, Costa Rica and Peru that allows you to add accounts for up to two people who do not live in the same house for an additional monthly charge for the owner.
Reed Hastings, co-founder and CEO of Netflox. Reuters Photo
Through this system, Netflix enabled a new function in the regions mentioned for “add additional members”. It was available in the Standard and Premium plans of the service.
After these rumors circulated, Netflix shares fell 47%, despite the fact that it has not yet launched the controversial end of shared passwords, which will undoubtedly anger many subscribers.
It is worth clarifying, when talking about sharing, it does not refer to the family accounts that parents and children use, within the same roof, but to the same account that is used from different houses.
“If you have a sister, say, who lives in a different city, and you want to share Netflix with her, that’s great.”explains Greg Peters, director of operations of Netflix, during the presentation of results.
“We’re not trying to shut down that exchange, but we’re going to ask you to pay a little bit more to be able to share with her and to get the benefit and value of the service, but we also get the revenue associated with that viewing,” they added.
Netflix increases its prices: how much were the plans
All of these changes also come because Netflix is now up, all over the world.
In Argentina, the Basic Plan for a screen went from 376 at $29 pesos (increased 50 pesos). Meanwhile, the Standard (2 screens and HD) Premium (4 screens and UHD) plans remain at the 799 Y 1199respectively.
In the US, its standard HD streaming plan with two simultaneous streams is up $1.50, to a total of $15.49 per month, while its premium tier with 4K and four simultaneous streams is now it costs 19.99.