The day of the apocalypse is at hand for many Netflix users: the company announced in its latest financial report that it will begin Password sharing fee coming soon. The company expects to bring the novelty to the market first quarter of 2023until the end of March.
Netflix’s new batch is already being tested in some countries and will be released to everyone soon. In its document for investors, the streaming company explains: The new fee is aimed at those who share the Netflix password with people in different households, which the company estimates is the case in 100 million households.
According to Netflix, sharing passwords is detrimental to the company by limiting subscription revenue and preventing “the ability to sustain longterm growth” for new investments in the streaming platform. The company is already gearing up for the feature’s launch, pointing out that it has even rolled out new features to make life easier for users during this transition, such as an option to transfer profiles to new accounts.
Netflix expects layoffs
While the company hopes that the additional payment can help with longterm finances, there is a tendency for some users to leave the service after the novelty is released. Netflix said so in its shareholder statement Expect a wave of cancellations after the start of the feebased password release.
“As we go through this transition and some users are stopping looking because they haven’t switched to new payers shortterm engagement could be negatively impacted,” the company explains. However, based on the experience of tests conducted by Netflix in Latin American countries, the company expects that over time more users will pay for the service.
It’s worth noting that Netflix has yet to announce the price and launch date of the premium for the Brazilian market, although the solution is being tested in nearby countries like Chile and Peru. According to TecMundo estimates, sharing a password can cost around R$10 in our country.