Streaming tackles account sharing through fees: Netflix incorporates fees to crack down on password sharing

Netflix announced their plan to implement a monthly fee to accounts who share their login credentials in early months of 2023.

The streaming service is putting these fees into effect after losing subscribers in years prior.

Netflix is testing the extra charge on “subaccounts” on Latin American Netflix servers. The company has currently switched to this new system in Latin America and is drafting a monthly fee for extra users outside the account holder’s household. This fee charges nearly onethird of a standard subscription fee and drafts to each additional account.

Netflix has not specified the anticipated cost for each additional user in America, but it is expected to be around $3-$4 if they follow the Latin American Netflix’s additional price.

For those who share their password for the streaming service, there will be a migration tool to transfer your data to a separate account. This will allow users to keep all their current shows and recommendations but will still require the regular pay of a standard account.

The company also announced a more cost-efficient streaming tier that will cost $7 a month. It will include ads similar to Hulu. This new tier will be available to American users on Nov. 9, including other countries such as Canada, Mexico and the United Kingdom.

Netflix said the additional revenue will be used to produce high-quality original series, including shows like Squid Games and Stranger Things. The number of limited series will also increase, such as Monster: The Jeffrey Dahmer Story.

Netflix’s recently grew by 2.4 million subscribers, which is higher than its projected 1 million this previous quarter. They are anticipating 4.5 million subscribers after the release of ad-supported subscriptions.

Although the company received community backlash, they will still progress with the password sharing fee to allow brand growth and better-quality services for consumers.