This is the file that marked the year 2022. While Netflix lost a million subscribers in the first half of the year, it concocted a response to account swapping. During its 2022 financial results, the streaming platform recalled that the widespread practice would soon be billed.
As of the first quarter of 2023, a system will be put in place to reduce its deficit. Today, 100 million homes are affected by this phenomenon, according to figures delivered in a press release. However, each action means one subscription pays less.
“It is not a popular decision”
According to the company, these lost cash inflows compromise “the long-term ability to invest in and improve Netflix.” That is why the platform wants to enforce its terms of use, which already limit, in theory, the use of an account to a single household.
The solution that Netflix contemplates is to charge for sharing accounts. During its tests in 2022, a sum of around three euros was requested. By paying this sum, subscribers had the option of creating a kind of “sub-account” accessible to a third party, whose IP address would be located outside of their home.
The company remains lucid about the implementation of its system. Initially, you expect users to leave the platform. But Netflix says the growing engagement should pick up over time. As observed in trials conducted in Latin America.
Just the TVs in question?
This hunt for non-subscribers must be carried out mainly through television viewing. Through the geographic location by IP, Netflix will be able to know if different households use the same account. The operation seems much more complicated for smartphones, tablets and computers, mobile devices by nature. This could push account sharing fans to make more use of their smartphone’s screen sharing feature on a connected TV.
However, the company in October unveiled an option to transfer a profile from one account to another. Something to motivate people who don’t want to lose their viewing history, influencing recommendations and allowing them to resume a series at the correct episode.
Added to this is the new offer with advertising. Reduces the minimum cost to access the Netflix catalog. It remains to be seen if users who take advantage of the scheme will prefer to have their own account or continue to share their loved one’s at an additional cost.
Source: BFM TV
