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Netflix has finally acted on its plans to crack down on account sharing. It’s notifying American users that they’ll have to pay $7.99 for viewers outside of their households.
As in other countries, it’s possible to add one extra member with the Standard plan, and two with the Premium plan.
Password-sharing crackdown takes effect
Not so long ago, Netflix encouraged users to share passwords with friends and family. However, after pinning its recent financial troubles on this activity, it started looking for ways to end it.
Now, the streaming giant is implementing a new way to approach the problem in the US. It has added the option for users to pay an extra $7.99 per member to share their accounts.
This is $1 per month more than its ad-supported subscription. Also, the number of extra members goes up to one for standard users and two for premium users.
It’s possible to convert existing profiles into extra member accounts.
Also, Netflix still allows its users to use their account in two places if they’re traveling or have a second home. But that’s about it when it comes to account sharing.
The impact of the new changes
Early data suggests that Netflix made the right move by putting an end to password sharing and charging extra accounts.
Antenna reported that the streaming service recorded four single largest days of user acquisition in the US in the past four and a half years.
On average, Netflix grabbed over 73k daily subscriptions after introducing the new password-sharing crackdown rule.
This is even more new users than the service acquired during the first week of the COVID-19 lockdown in the US.
Initially, there was skepticism over how customers would react to the changes. While some people have canceled their subscriptions, the numbers aren’t as high as feared.
The company estimated that over 100 million households worldwide used password-sharing tricks to get around paying for a subscription.
Moreover, Netflix stated that this new workaround of charging account sharing will positively impact its ability to invest in great shows and movies.