Netflix‘s long-standing battle against password sharing is taking shape as the company implements its paid account sharing program in Canada, New Zealand, Portugal, and Spain. The company has tested the new policy in Latin America and is now taking it to the next level. This move aims to tackle the significant number of shared accounts that have been hurting the company’s revenue and impacting its ability to invest in new content.
With the new policy, users in these countries will have to set a primary location to access the service without restrictions. If they want to share their account with friends or family, they will have to subscribe to the Standard or Premium tier and pay an extra fee for up to two users outside of their home. The fees for this new policy in Canada and New Zealand are $8, while in Portugal and Spain, the fees are €4 and €6, respectively.
Netflix has thought ahead and is offering users alternative solutions to account sharing, such as watching on their phone or signing in to the service on other devices, such as smart TVs in hotels. The company also allows users to convert a profile into a new account. Furthermore, Netflix promises to make adjustments based on feedback received and to continue deploying this policy in more regions in the “coming months.”
The main reason behind Netflix’s new policy is to protect its bottom line, as shared accounts have been hurting the company’s revenue. Product Director Chengyi Long stated that the over 100 million households sharing accounts have been impacting Netflix’s ability to invest in new content. The new policy aims to improve the company’s revenue while giving users who share accounts the option to pay a fee instead of subscribing to a separate account.
However, it remains to be seen how new regions will react to the new policy. While Netflix is the market leader in the streaming industry, many rival services do not have restrictions on account sharing. As such, some users may be resistant to paying a fee to use someone else’s access, and some may choose to forego Netflix altogether to avoid paying a fee.
Netflix’s paid account-sharing policy is a significant move in the company’s fight against password sharing. While it remains to be seen how users will react, Netflix’s new policy aims to protect its revenue and improve its ability to invest in new content.