Netflix has officially enforced new regulations regarding password sharing. There is also a possibility that the streaming service could become more expensive for its customers that want to maintain their accounts.
Netflix announced the details earlier this year in the U.S to users in the country and sent out emails to customers sharing accounts outside of their households. Shortly aftwards, they introduced its paid-for sharing options in about 100 countries that make up 80% of their revenue.
“Revenue in each region (where password sharing has been restricted) is now higher than pre-launch, with sign-ups already exceeding cancellations,” Netflix said in a letter to shareholders, published in July this year.
As sharing of passwords have become more commonplace among streaming services, it has become an industry-wide problem affecting the likes of MultiChoice Group’s DStv that, in a similar light enforced paid subscriptions for profile sharing.
Based on the statement released by Netflix, the price of sharing a profile with an individual that does not reside in the same household is $7.99 in additional to the already existing subscription fee. In South Africa the rate is R143. This rate excludes sales taxes and currency conversion fees.
The new policy is to helped the streaming service add 5.9 million paying customers between April 2023 and June 2023.
