If you share your Netflix password with an acquaintance or friend, your subscription will become more expensive. From 2023, Netflix starts charging for password sharing, and profiles become sub-accounts. The platform has announced it will officially start charging for account sharing early next year, after hinting at it in recent months.
In a letter to shareholders, Netflix said the company intends to launch "additional member" sub-accounts in 2023, which will require users to pay an additional fee for friends and family members to access their account. Netflix did not specify how much the additional membership fee will be.
The move comes as other platforms begin to identify ways to prevent and limit password sharing. According to a March survey by Leichtman Research Group, an estimated one-third of US Netflix subscribers currently share their passwords.
The new policy could provide useful revenue for the platform, which has had a tumultuous year. Although the company announced Tuesday that it turned around and gained more than 2 million new subscribers, it has lost subscribers for three consecutive quarters and has struggled against slowing growth.
During a Netflix, earnings call Tuesday, COO and Chief Product Officer Gregory Peters discussed the use of the profile transfer. "I mean there are obviously situations where you can imagine like you have a kid at home who is going to go off and become an adult and get their own account, and it supports those ones," he said.
The new model makes it easier for users who have shared their passwords with others to create and manage sub-accounts. "Another component of this, though, is allowing account owners to be able to pay for Netflix for some friend or family, somebody they want to share the service with," Peters said.
"And so they're able to create a sub-account, which we're calling extra member, to enable that model, too." As it regains momentum, charging additional members allows the company to start "monetizing all that unpaid viewing," Netflix CFO Spence Neumann said in a call with investors on Tuesday.