Netflix plans to crack down on password-sharing practices starting in 2023, letting users transfer their profiles to new accounts. Netflix will allow subscribers to create sub-accounts starting next year, and will pay extra for sub-accounts when Netflix detects that someone is using the owner’s subscription outside the home. That is, as long as the sub-users in the account are not watching Netflix in the same household, the main user will pay the more expensive monthly fee.
Netflix added 2.4 million new subscribers globally last quarter, but only added 104,000 in North America. In the face of the slowdown in user growth, the management intends to open up the behavior of “folding Account”, and strive to increase the number of users here. Currently, Netflix has implemented a crackdown on “Accounts” in Chile, Costa Rica and Peru, and once Netflix detects that someone is using it outside the main subscriber’s home, the main subscriber pays extra for the sub-account.
In order to increase profits, Netflix is more prepared to launch a low-cost subscription model with ads. We hope to attract more users through lower monthly fees. Netflix is partnering with Microsoft to deliver ads to users that play a 15-30 second ad before watching each clip. This mode will be available in the US, Australia, Brazil, Canada, France, Germany, Italy, Japan, South Korea, Mexico, Spain and the UK on November 3rd.