It has been a long time coming for Netflix to start charging for password sharing, especially since the streaming service is in need of extra funds. Now, Netflix is already planning to implement the new policy more broadly before the first quarter of 2023 ends.
Sharing from Afar
To be specific, what Netflix meant by allowing the sharing of passwords more broadly is widening the coverage area of password sharing. Netflix stated that as they roll out paid sharing, it will also be extended to other members that are outside the country.
Password-sharing charges might come around April of 2023, or any time in the first quarter. Netflix is already anticipating some negative feedback with the change, but they believe that it will have long-term benefits such as improved overall revenue.
If you prefer to have your own account, you have plenty of options to make it so. Netflix launched a tool that lets you manage the devices that are logged into your Netflix account, wherein you can log unwanted users out remotely, according to The Verge.
Also, you can choose to transfer your profile o an entirely different account. Other than Netflix gaining another paid subscriber, you won't have to lose the algorithm you've built through hours spent watching shows and movies in your profile.
Users can also opt for the ad-supported plan if they want a cheaper deal. Although, a lower cost means that some features won't be available. For instance, the best video quality you'll get is 720p, and you won't be able to download content for offline viewing.
Other Netflix News
Netflix struggled with its revenue around mid-2022 but bounced back by the end of the year. The streaming service gained 7.66 new paid subscribers in the fourth quarter, which exceeded the expectations of Wall Street which was 4.57 million.
The company gained a revenue of $7.85 billion, as mentioned in CNBC, which is the first quarter where ad-tier subscriptions are included in its earnings, which was launched in November of 2022. Although, Netflix did not mention how many subscribers chose the tier.
Netflix believes that it will be able to reaccelerate its revenue growth, predicting that the first quarter of 2023 would see a rise of 4%, compared to Wall Street's prediction of 3.7%. The numbers seem to be good based on reports.
In an earnings call, Netflix mentioned that there has been "comparable engagement" from the new ad-supported tier paired with the non-ad tiers. Most subscribers are also remaining in the more expensive Premium plan as opposed to opting for the cheaper ad-tier plan.
The increase and retainment in subscribers could be due to Netflix's release of hit content like "Wednesday," which is now the service's third most popular show ever. "Harry & Meghan" also got the title of second most popular documentary series on Netflix.
As the streaming service is getting back on its feet, it is also changing in leadership. CEO Reed Hasting is stepping down and will be succeeded by co-CEO Ted Sarandos, as well as former COO Greg Peters.
