Image Source: The Verge
After years of rapid expansion, Netflix is looking for new revenue streams. It is also intensifying its effort to charge users for using shared accounts.
In order to add a “second home” to their accounts. The streaming service said that customers in Central and South American countries need to pay an additional $2.99 per month.
It also gave a warning that the ban on sharing passwords would become international.
The most recent announcement was made before its findings’ deadline on Tuesday.
The business reported its first subscriber fall in more than ten years earlier this year. The company is anticipated to reveal a decline in subscribers growing when it updates its members and reports its performance.
It is a sharp turnabout for a firm that for years appeared to be growing unabated. As it transformed how people consume entertainment globally. Also supended the old television and movie theater industries.
As a result of people flocking to its events while stranded at home with few other options for entertainment. This was after the epidemic struck in 2020. It solidified its status as a global juggernaut.
However, when old habits from before the pandemic resurface, Netflix has trouble luring new subscribers and keeping hold of devoted existing ones.
People in places like the UK have canceled their memberships due to price increases. At the same time, consumers in the US and other countries are being enticed to move by a slew of new competitors, like Disney, many of whom used to sell their films and television shows to Netflix.
According to research, a growing number of people create accounts to watch certain shows before deleting them.
The firm’s proposal for additional funding for joint accounts is unclear as to how families will react.
Netflix Introduced the Idea of Extra Cost of Shared Accounts
Netflix announced in March that certain households, including those in Chile, would have to pay a fee to add an “extra member.”
The most recent change, which will take effect in Argentina, Honduras, Guatemala, El Salvador, and the Dominican Republic beginning next month, frames the request somewhat differently and asks for $2.99 for each new property.
It said that home removal could be done at any moment by editing the user’s account.
Before implementing the fees internationally as soon as this year ends, Netflix has indicated it plans to test out various presentation methods.
The company has announced it will experiment with a less expensive ads-based service in addition to cracking down on password sharing in an effort to squeeze more money out of existing consumers.