Netflix defines when it will start blocking password sharing

Netflix defines when it will start blocking password sharing

The charge for sharing Netflix passwords should start very soon. Although the company has not yet made official a date to start taxing those who share their account with friends and family, it has already signaled that the novelty should arrive in the coming months and that many people will need to review their profiles as early as March.

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During the presentation of results for the last quarter of 2022, the company stated that it intends to change its sharing policy and make this additional charge in the first months of 2023, more specifically at the end of the first quarter.

This means that the schedule proposed by streaming is that the extra amount for those who share the account will start to be charged from the end of March. Nothing was said about the amount charged, but the countries where the modality was tested showed something close to US$ 3 — about R$ 15.60 at the current exchange rate — which is already much cheaper than two bills separate.

Even so, there is a certain expectation and apprehension for the result that this change in attitude on the part of Netflix will bring to its subscriber base. According to the company, it is estimated that more than 100 million accounts worldwide make some kind of sharing and that this has been affecting the company’s long-term growth and affecting its investment capacity. The problem is that the additional charge can create the reverse effect of what is expected.

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billing x cancellation

Streaming tested this tax in some Latin American countries, such as Costa Rica, Peru and Colombia. What was noticed in these markets was an increase in subscription cancellations as a kind of user reaction. For this very reason, it is believed that the global launch of the collection will affect the company’s growth in the short term.

However, Netflix’s bet is that the new policy will change this user’s behavior, as the data recorded in these test countries has already shown. What the company found was that, over time, the total activations of accounts that previously belonged to someone who lent third-party passwords also rose — and the expectation is that this will bring the desired increase in revenue.

Even so, it is something that should only happen in the medium and long term.