Netflix reveals ‘paid sharing’ option for multiple profiles on the same account

Netflix has unveiled a “paid sharing” option for multiple profiles on the same account as the streaming giant cracks down on password sharing “early this year.”

The plans to change the way people use Netflix could mean that millions of people will no longer be able to watch their favorite shows and movies because they share an account.

Under the new rules, people who watched Netflix with someone else’s account must create their own logins and pay for their own access.

Testing of the new feature is already underway, with a platform-wide rollout expected to take effect by the end of March.

To allow people to share an account, a new option, ‘paid sharing’ is added, which allows for multiple profiles, but costs less than a full subscription.

Netflix stated last week: “Later in the first quarter, we expect to roll out paid sharing more widely.

Today’s widespread account sharing (more than 100 million households) undermines our ability to invest in and improve Netflix over the long term and to build our business.

“We’ve been working hard to develop additional new features that improve the Netflix experience, including the ability for members to monitor which devices are using their account and to transfer a profile to a new account.

“As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with.”

The change should boost Netflix’s revenue in 2023.

Their chief financial officer Spencer Neumann said one of the goals for this year is to nudge viewers who use passwords shared by subscribers to pay their own way.

He added, “We are very confident in our ability to increase sales throughout the year by scaling ads and launching paid sharing[of accounts].”

Netflix ended last year with 230 million global subscribers, surpassing expectations with hits like Wednesday and Harry & Meghan drawing new viewers.

The streaming giant said: ‘2022 has been a tough year, with a bumpy start but a better finish.’

Netflix finished last year with 230 million global subscribers, surpassing expectations with hits like Wednesday (pictured)

The Netflix show Harry & Meghan (pictured) attracted new viewers

Netflix said they lured 7.7 million new members in three months

The new titles helped attract users to a new, lower-cost “Basic with Ads” subscription as consumers cut back on their entertainment spending amid rising inflation and an uncertain economy.

Revenue from October to December was in line with estimates at $7.85 billion.

Netflix is ​​insisting that counting new users is no longer the main criterion for judging the health of the company and that revenue should instead be the main metric.

“What may be lost in the mix is ​​that a number of new subscribers — we don’t know how many — probably came in at Netflix’s ad-supported level,” said Insider Intelligence’s lead analyst Paul Verna.

“That most likely means a lower average revenue per subscriber, a measure that Wall Street will pay more attention to as Netflix’s ad businesses scale,” he said.

Netflix faces stiff competition from big-pocket rivals, including Disney+, which has also introduced an ad-based subscription.

But despite the challenges, Netflix is ​​one of the few tech giants to earn Wall Street’s confidence with its share price rising nearly 50 percent in the past six months.

Other tech giants and Disney have been hammered into the market as companies lay off employees and cut costs after massive hiring and spending at the height of the coronavirus pandemic.