By the end of the first quarter (Q1) of 2023, the streaming giant Netflix plans to push out its new paid password-sharing option “more broadly.”
According to the company’s earnings reports on Thursday they said, “While our terms of use limit use of Netflix to a household, we recognise this is a shift for customers who share their account more broadly.”
Members in various nations will also have the choice to pay more if they want to enjoy Netflix with someone they do not live with when we roll out paid sharing, it continued.
The streaming behemoth anticipates some “cancel reaction in each market” after launching the paid password sharing, but claims that overall revenue will eventually increase.
Additionally, the business said that Greg Peters had moved up from COO to become Ted Sarandos’s co-CEO and that Reed Hastings had resigned from his position as co-CEO of Netflix to take on the role of executive chairman. In the meantime, it was revealed last month that Netflix intended to discontinue its password-sharing feature in the first quarter of 2023.
The streaming giant was aware for some time that password sharing was a problem that had a detrimental impact on its revenues, but the increase in subscriptions in 2020 made the firm decide not to address the matter. Hastings felt it was time to address the problem after last year’s revenue decline and the platform’s first subscription loss in ten years.
The world’s largest streaming service stated in October of last year that all customers will now have access to the “Profile Transfer” function, which prevents password sharing.