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Netflix may expand shared password fee worldwide to mitigate further profit loss

Recently, Netflix stated that over 100 million households partake in password sharing worldwide. That is why the company is clamping down on it.
Netflix may expand shared password fee worldwide to mitigate further profit loss
100 million households share Netflix passwords

Over 100 million households share Netflix passwords worldwide

The figures are in! Over 100 million households are sharing Netflix passwords all over the world. In the US and Canada alone, 30 million households are guilty of the practice. Netflix is not happy about this as it causes profit loss for the company. So, it proposed a solution.

Instead of just banning the guilty accounts, Netflix compromised by offering to add a small monthly fee for the ability to share passwords with another household. If you recall, this is already being tested in Peru, Costa Rica, and Chile. However, with how prevalent this is around the world, it seems that it's only a matter of time before it goes worldwide.

According to a survey done by Time2Play, 80 percent of Americans who use a shared Netflix password will not get their own accounts if they can't use the shared account anymore. Disney+, Hulu, and other streaming services do not seem to have issues with password sharing and will not pursue what Netflix is chasing before it comes out as fruitful.\\

As a recap, Netflix began monitoring what they call "Extra Members" or users in different households for existing accounts across Chile, Costa Rica, and Peru a month ago. Subscribers can add up to two extra members that live outside the household for an extra monthly fee. The fee will be around USD 2.99. These new members will also have to register their own usernames and passwords.

Netflix will allow users to move their current profiles to another account or an existing Extra Member sub-account, which will maintain the user's watch history, likes, and tailored recommendations

It is ironic since back in 2017, Netflix's official Twitter account tweeted, "Love is sharing password". Alas! How times have changed.

What do you guys think?

Source: CNBC

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