Netflix introduces a New feature to Crackdown Password Sharing

Netflix password sharing is coming to an end very soon as the company is up to its security features. 

The streaming service is currently testing a new password-sharing fee feature in some Latin American countries such as Chile, Costa Rica, and Peru. Netflix wants to start charging users who share their passwords with people outside of their households, which violates its terms of use. 

How will it work? 

According to Forbes and Afrotech, in addition to Netflix’s monthly fee, users would have the option to add up to two extra-member accounts for about $2 to $3 per month each. The streamer hopes the move will encourage non-paying password-sharing households will convert to paying customers. 

The publication states, “If the plan to monetize password sharing pays off, it could add $1.6 billion to its top line, according to estimates by Cowen & Co. analysts. That equates to about four per cent upside to the firm’s 2023 revenue projection of $38.8 billion.” 

“I suspect that a crackdown will result in five per cent subscriber growth, partially or fully offset by an increase in churn, and it won’t impact financials much, if at all,” Wedbush Securities analyst Michael Pachter told The Hollywood Reporter. “I think they are doing this now because growth has stalled to a crawl,” Afrotech reported. 

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