In an effort to get users to pay for individual subscriptions, Netflix has instituted new rules regarding account sharing.
The company is encouraging its users to share their accounts with their friends and extended family, but doing so will incur a fee.
The next stage of Netflix’s crackdown on account sharing is the implementation of new regulations designed to get users to start paying for their subscriptions.
At first, these regulations will only apply in a small number of countries, and account holders will have to pay a fee to allow others access to their account.
According to Netflix, 100 million people are in breach of their terms of service by allowing other people to use their accounts.
Netflix has long been accommodating, choosing not to strictly enforce the rules against shared accounts. Despite falling revenues and a renewed emphasis on growth, it has signaled that it will make more of an effort to pursue customers in the coming months.
Canada, New Zealand, Portugal, and Spain have recently implemented its plan to charge users for using their services. An earlier rollout included several Latin American nations.
Netflix has remained silent about when it plans to introduce its paid sharing model outside the United States, but it is widely expected to do so within the next few weeks. About one-third of all Netflix subscribers live in either the United States or Canada.
It is estimated that over 231 million people in 190 countries have subscribed to Netflix. If as many as 100 million households are currently sharing their accounts with others, the company will have less money to invest in new shows.
In a blog post published on Wednesday, the company stated, “We’ve made it simple for roommates to share a Netflix account with tools like profiles and simultaneous streaming. Despite their widespread success, questions remain about how best to facilitate Netflix collaboration.
Netflix announced on Wednesday that its subscribers in Canada, Spain, New Zealand, and Portugal would be able to add up to two non-living guests to their existing Netflix account for a monthly fee. This service costs 7.99 Canadian dollars per month but only 3.99 Euros per month in Portugal.
The company announced that users who have been accessing Netflix through a friend’s account will soon be able to transfer their viewing history and other preferences to their own accounts.
Netflix has not yet announced how it will handle account sharing between people who live in different households. In a January conference call with investors, Netflix co-CEO Greg Peters explained the company is taking its time with the rollout.
Keep in mind that there will be some current members who are unhappy with this change. We’ll see a little bit of a cancel reaction to that,” he said. That’s the kind of response we anticipate from customers if we raise prices.
