Netflix, after the subscription with advertising, the password sharing will be blocked

We wrote it just yesterday: the possibility of transferring the profile of Netflix nothing more than the prelude to password sharing lock. Not even 24 hours later, the US company announced that will pass from words to deeds in early 2023 (“early 2023” to be precise).

“We have adopted a thoughtful approach to monetize account sharing and we will begin to do so more widely from the beginning of 2023, “reads the financial documents of the company founded by Reed Hastings and Marc Randolph.

“After listening to consumer feedback, we will offer the ability for users to transfer their Netflix profile to their account and for sharers to manage their devices more easily and create sub-accounts (” additional members “) if they want to pay for it. family or friends. In countries where we have our low-cost plan with advertising support (also announced in Italy, ed), we expect the profile transfer option to become particularly popular. “

These words come on the sidelines of the economic results of the third quarter, a period in which Netflix has seen the share of subscribers rise by 2.4 million, bringing the total of 223.09 million. A number higher than expected, which was around one million, and which contributed to the turnover of 7.93 billion dollars. It therefore seems to be there a change of pace compared to the beginning of the yearwhen Netflix reported the first drop in subscribers in over 10 years.

The event prompted the company to review its password sharing policyfor years used as an advertising flywheel for potential subscribers, with tests that in recent months have been conducted in Chile, Costa Rica and Peru and which have required the payment of an extra for secondary accounts used outside the family unit.

Netflix also tested a way for users in Argentina, El Salvador, Guatemala, Honduras and the Dominican Republic to purchase “additional homes” for accounts located outside the subscriber’s primary residence.

Added to this strategy is the plan with advertising, which will start in Italy on November 3 at 5.49 per month, and which will serve to fend off the onslaught of competing streaming services and bring in new subscribers, with Netflix forecasting an increase of 4.5 million users in the last quarter of 2022.

“Our competitors are investing heavily to increase subscribers and engagement, but building a large and successful streaming business is difficult: we estimate that they are all losing moneywith operating losses in 2022 well over $ 10 billion, against Netflix’s positive annual operating profit of between $ 5 and $ 6 billion “, concluded the company.