Netflix executives have proposed charging for password sharing. They estimate 100 million people use shared login information to watch the streaming service.
While Netflix Inc. NFLX counts 222 million subscribers, the company estimates that another 100 million people are using shared login information to watch the streaming service. And Netflix claims that this account-sharing is a significant factor in the company’s lack of recent user growth. It lost 200,000 subscribers in the first quarter — the first time the streaming giant lost subscribers in over a decade.While Netflix Inc.
Read more: Netflix eyes ad-supported tier and targets password-sharing as subscriber total shrinks, stock plunges Netflix has three monthly subscription options: basic , standard and premium . And for all three service tiers in the U.S., an unlimited number of devices can be used to log in under a single account — but only a certain number of users can be concurrently streaming the service under a single account at once, a Netflix representative told MarketWatch.
So that means that password-sharers have been able to split a single Netflix subscription between siblings, friends or significant others at home and in different locations over the years, with the only deterrence being simultaneous streaming. But that could change over the next year or so. “The principal way we have is asking our members to pay a bit more to share the service outside their homes,” said Greg Peters, Netflix’s chief product officer, in video interview with JP Morgan analyst Doug Anmuth. Peters went on to give the example that, if you are sharing your Netflix account with your sibling in another state, then you will be asked to pay a fee. “We are trying to find a balanced approach here, a consumer-centric approach,” he continued.
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