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· Posted on
February 21, 2024

Netflix will test out charging customers for password-sharing

Netflix has always allowed for this 'lil bonus...but not for long.

What's the key learning?

  • Netflix plans to charge customers in Chile, Costa Rica and Peru for password-sharing
  • Subscribers with premium and standard plans will be able to add up to two additional users in other locations - but there'll be a fee
  • 31% of all streamers have shared their streaming password with someone they live with
  • As growth drops off and new sign ups decline, Netflix needs new ways to bump up its revenue.

Background: We all know Netflix's streaming service allows users to set up multiple profiles. One for mum, one for me... and one for you. But really, mum's paying for all of them, and we're there for the ride.

What happened: Netflix allows for this 'lil bonus...but not for long. Now it plans to charge customers in Chile, Costa Rica and Peru for it.

What else: Subscribers with premium and standard plans will be able to add up to two additional users in other locations. But there'll be a fee. Right now, it's just a 'test' - but it could be the solution for the Flix's slowing growth.

🔔 What's the key learning?

💡While Netflix used to poke fun at password-sharing on Twitter... it's now started to take a toll on their bottom line. As growth drops off and new sign ups decline, Netflix needs new ways to bump up its revenue.

💡 31% of all streamers have shared their streaming password with someone they live with. And back in 2019, this password-sharing cost streaming services US$9.1 billion.

💡 We know that Netflix has been struggling to add new users over the last couple of quarters, so now it's trialling a new user model... and if it works in South America, it may be rolled out globally.

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