To boost revenue and gain subscribers, Netflix recently introduced an ad-supported subscription plan in select markets. In addition, the streaming platform has also ended password sharing business in some markets. The former Netflix CEO Reed Hastings revealed last year that password sharing option would end for everyone in a phased manner. Now, the new Co-Chief Executive Officers (CEO) Greg Peters and Ted Sarandos have told Bloomberg in an interview that Netflix password sharing will end for all users soon. This suggests that Indians who rely on friends and others to use Netflix will soon need to pay to use the platform.
As per the report, Peters said that the majority of users who do not pay for Netflix but use the platform will soon have to start paying for watching content. However, Peters revealed that the streaming platform will not sacrifice the consumer experience even after rolling out controlled password sharing. He also accepted that after password sharing is limited globally there will be many unhappy customers, but the CEOs emphasize increasing the subscriber base by 15-20 million with focus on countries like India. Peters added that he would like to have all users who currently don't pay to use Netflix eventually pay for the content they watch.
For the unaware, Netflix has been testing the end of password sharing in some Latin American countries, including Costa Rica, Chile, Peru, and some more. In these countries, Netflix is charging $3 (Rs 250 approx) to people who wish to use their friend's Netflix account. The streaming platform hasn't revealed how much it will charge per user in India, but it is possible that the amount should be almost at par with the global pricing. Eventually, the option will end for Indians as well. As per the latest reports, Netflix will roll out the end of password sharing in other markets, including India, starting March 2023.
The question remains – how will Netflix identify freeloaders? The streaming platform previously explained that Netflix will enforce the new password sharing rule through IP addresses, device IDs, and account activity. This way, the streaming platform will identify users who are outside a particular household and wish to watch Netflix content free of cost.
The video streaming platform is trying new ways to increase its subscriber base. Cracking down on password sharing is one such initiative. Another way is to introduce an ad-supported plan. Netflix recently launched a new affordable ad-supported plan at $6.99 in the United States with the hope of attracting users who do not wish to pay a lot to get a Netflix subscription. In India, Netflix offers four plans priced at Rs 149, Rs 199, Rs 499, and Rs 649.
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