Netflix Announces Extra User Fees For 2023 — Who Will Be Affected?
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The end of Netflix password sharing is almost here. The company announced during its quarterly earnings call on Oct. 18 that it will charge customers a monthly fee if they share their login information. This goes into effect in early 2023.
Engadget reported that this move comes on the heels of a pilot program currently running in Latin America which charges fees for extra users outside of the household.
According to Netflix, the company is focused on revenue growth heading into 2023 and has developed this solution as a “thoughtful approach to monetize account sharing.” Engadget noted that Netflix also confirmed that it lost subscribers earlier this year. However, after releasing “Monster: The Jeffrey Dahmer Story” and the fourth season of “Stranger Things,” the company was able to add more than 2.4 million subscribers in its third quarter.
Extra user pricing has not yet been announced, but Engadget noted it could be around $3 or $4 if the company follows the pilot program’s “one quarter of the basic rate” scheme.
Netflix will offer users the ability to transfer their Netflix profile into their independent account. Sharers will also be able to better manage their devices and create sub-accounts (“extra member”) if they want to pay for family or friends.
The company currently offers three pricing tiers with a fourth being added in November 2022. The Basic subscription plan costs approximately $9.99, but the new and less expensive, ad-supported tier will only cost users $6.99 per month.
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