Netflix Is Looking to Stop Password Sharing Among Family Members
Written by SOURCE on December 24, 2022
Netflix is making a modification to its subscriptions that might leave customers unhappy.
The Wall Street Journal reports that the streaming service is looking to stop password sharing early next year, in an effort to boost subscriber numbers which have dwindled. This new method could help the platform earn an estimated $721 million in revenue, a number that comes from customer surveys, where subscribers said they would pay more so family members could stay signed in.
“Make no mistake, I don’t think consumers are going to love it right out of the gate,” Netflix Co-CEO Ted Sarandos said to investors this month.
Netflix could very well lose customers after this. It’s already the most expensive streamer right now, and no other platform has introduced this type of subscription yet. This move will make Netflix that much more expensive.
While there isn’t yet a set price for the service, executives reportedly think that adding family members onto a subscription will cost close to Netflix’s ad-supported tier, which is $7 per month.
Netflix is currently trying out its new subscription in Latin America, and it hasn’t been foolproof. Though there have been some new sign-ups and a fair amount of grievances, the streamer has hit some snags when it comes to people who travel—where Netflix can’t gauge where their main household is—and kids who spend time at two parents’ homes.
There is a possibility this could work in Netflix’s favor and other platforms follow suit by also ending password sharing—and there’s a possibility this could be a flop.
