Netflix starts charging additional fee for password sharing; see the price

Recently, news broke that Netflix is ​​considering implementing an additional fee for users who share their passwords with people outside their household.

According to a tweet, the company intends to charge an additional R$12.90 for each user who is not linked to the same residence as the account holder.

Sharing passwords for streaming services has become a common practice among friends and family, and many Netflix users benefit from this possibility.

However, the company is looking for ways to address this issue and ensure that each person is paying for their individual use of the streaming platform.

The justification behind this measure is that, by sharing passwords with people who do not live in the same household, there is an increase in the number of active users on a single account.

This could negatively impact Netflix’s business model, as the company bases its revenue on the number of subscriptions and individual usage of the services. The figures reported are that around 100 million accounts are shared.

The reasons for such a measure

By implementing this additional fee, Netflix seeks to encourage users to purchase their own subscriptions, thus ensuring a fairer distribution of operational and content licensing costs.

Furthermore, the company is seeking to increase its revenue, considering that sharing passwords is a practice that directly impacts its profitability.

See below Netflix’s post on its official Twitter account:

Your Netflix account is for you and the people you live with.

Now, you can manage how these accesses are used with the new tools that are coming here — and yes, you can watch normally when you are away or traveling.https://t.co/j2WajzOSKg

— netflixbrasil (@NetflixBrasil) May 23, 2023

Brazil and other countries

The initiative to implement an additional fee for users who share passwords on Netflix is ​​not something new that is exclusive to Brazil. This is because it has already been adopted in other countries.

Since the beginning of this year, countries such as Canada, New Zealand, Portugal and Spain have already been applying this extra charge in their respective regions. The United States also began adopting this measure since Tuesday (23).