Poular streaming service Netflix has declared that it would start cracking down on password sharing in 2023.
The Verge reported that as part of their “monetising account sharing” strategy, Netflix intends to start enabling users to create sub-accounts in the upcoming year.
In the most recent quarter, Netflix added 2.41 million customers, bringing the total to 223.09 million worldwide.
The business claims it has increased its paid subscriber base in the US and Canada over the past three months by 1,04,000, up from 73,000 during the same time last year. It also claims it is still committed to the “bingeable release strategy.”
Earlier this year, Netflix had its first decline in members in more than a decade, with a 1.3 million loss in the US and Canada and a 1 million reduction globally.
According to the study, Netflix started gradually weaning customers away from sharing passwords as a solution.
It tested its streaming platform in Chile, Costa Rica, and Peru, asking consumers to pay extra if someone used their subscription while it was owned by them outside of their home.
Netflix said last week that its $6.99 per month “Basic” tier, which is financed by advertisements, will go live in the US, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico, Spain, and the UK on November 3.
Furthermore, Netflix has made partnership agreement with Microsoft for displaying ads to users that will last anywhere from 15 to 30 seconds.