One of Netflix’s biggest problems right now is password sharing, and to deal with it, the streaming giant introduced paid sharing, which allows users to share their passwords, but requires paying for it. First, introduced in four regions earlier this year, “paid sharing” brings good news for Netflix, as the company is “pleased with the results” and now plans to expand it to more regions this quarter. She is making.
In a letter to shareholders, Netflix said, “We are planning a broader rollout in the second quarter, including the US.”
in February, Netflix introduces paid account sharing option in Canada, New Zealand, Portugal and Spain, This feature allows primary account holders to share their Netflix service with up to two individuals without paying an additional monthly fee who are not part of their household.
Netflix planned to expand the paid sharing plan to more countries in the first quarter. However, the company says it delayed the rollout to learn more about how customers react to the sharing plan, thus “shifting the timing of the broad launch from late Q1 to Q2.”
So, if someone outside of the account holder’s household uses their Netflix account, they will be alerted to “buy an additional member”. Netflix allows up to two additional members per account, with fees for each additional user varying depending on the country.
With each rollout, Netflix learns how to best implement the changes and prioritize member needs, including maintaining travel/watching on the go and improving access controls and profile transfers.
While the rollout may shift some subscription growth and revenue gains from Q2 to Q3, Netflix believes it will result in better results for members and the business. In the long term, payment sharing will contribute to a larger revenue base, supporting future service improvements and growth.
“When we announce the news we see a cancellation reaction in each market, which affects near-term member growth,” Netflix said. “But as borrowers begin activating their own accounts and existing members add ‘Additional Member’ accounts, we see acquisitions and revenue increase.”
In a letter to shareholders, Netflix said, “We are planning a broader rollout in the second quarter, including the US.”
in February, Netflix introduces paid account sharing option in Canada, New Zealand, Portugal and Spain, This feature allows primary account holders to share their Netflix service with up to two individuals without paying an additional monthly fee who are not part of their household.
Netflix planned to expand the paid sharing plan to more countries in the first quarter. However, the company says it delayed the rollout to learn more about how customers react to the sharing plan, thus “shifting the timing of the broad launch from late Q1 to Q2.”
So, if someone outside of the account holder’s household uses their Netflix account, they will be alerted to “buy an additional member”. Netflix allows up to two additional members per account, with fees for each additional user varying depending on the country.
With each rollout, Netflix learns how to best implement the changes and prioritize member needs, including maintaining travel/watching on the go and improving access controls and profile transfers.
While the rollout may shift some subscription growth and revenue gains from Q2 to Q3, Netflix believes it will result in better results for members and the business. In the long term, payment sharing will contribute to a larger revenue base, supporting future service improvements and growth.
“When we announce the news we see a cancellation reaction in each market, which affects near-term member growth,” Netflix said. “But as borrowers begin activating their own accounts and existing members add ‘Additional Member’ accounts, we see acquisitions and revenue increase.”