Former Netflix CEO Mr. Reed Hastings already hinted last year about the end of password sharing option for everyone. Now, the new appointed CEOs Ted Sarandos and Greg Peters revealed more information on it.
In Short
· Password sharing is no more allowed in many countries now
· End of password sharing starts in effects with March 2023
· Recently, Netflix launched ad supported subscription scheme
To gain more subscribers and boost revenue, Netflix’s most anticipated action has come in effects with this March 2023 for some markets. Also, the OTT platform has brought the ad supported subscription scheme in selected markets. In an interview to Bloomberg Netflix’s new CEOs told that password sharing is going to end gradually for every user very soon. The users who rely on their family and friends to share password, now they have to pay extra to use this platform.
As per the news published on the above-mentioned site, Peters shared that, majority of Netflix users who enjoy the content but do not pay for it, soon have to pay and only then use this OTT platform. However, Peters informed that consumer experience will not be compromised even after the application of controlled password sharing policy. Also, he accepted that this action may leave many consumers unhappy, but he also emphasised on uplifting subscribers base by upto 15-20 million in countries like India. He also added that he wishes every Netflix users pay to enjoy the content eventually, who don’t pay currently.
Netflix is currently testing the effects of password sharing closer in Latin American countries like, Chile, Peru, Costa Rica and few more. Charges for using friend’s Netflix account is $3 in these stated countries. Netflix is still to disclose the charges it is going to lay upon the users. But is anticipated that the charges will be at par with pricing at global level.
Here the question arises - what way will Netflix pick out the freeloaders? On which the streaming platform revealed previously that Netflix will impose new rules for password sharing through account activity, device IDs and IP address. In this way, Netflix will identify between watchers paying for video streaming platform and freeloaders.
The OTT platform is finding every possible way to multiply subscriber base. Password sharing crackdown is one of those initiatives. Introducing ad supported plan is another way to increase subscriber base. Recently, Netflix has launched an affordable ad supported scheme. In United States, ad supported scheme charges $6.99 for subscription for luring users, not willing to pay much on Netflix subscription. Netflix, in India, proposes four plans at the cost of Rs 649, Rs 499, Rs199, and Rs149.
