The world's largest streaming service, Netflix, has announced that it will end password sharing this year and introduce an advertising-supported tier for its web-based streaming service. People who frequently rely on friends and others to enjoy Netflix will soon have to pay to utilise this OTT service. In an interview with Bloomberg, Netflix's two new Co-Chief Executive Officers (CEOs), Ted Sarandos and Greg Peters, provided additional details regarding the discontinuation of password sharing.
After introducing controlled password sharing in a stepwise manner, the report claims that the video streaming platform won't compromise the user experience. Peters responded that the video streaming service would try to recoup every customer who would pay for password sharing when asked how many people would do so.
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According to the report, the internet streaming service wants to add 15 to 20 million new subscribers, with a focus on countries like India. Netflix is aware that this decision may result in a "cancel reaction" across markets in Latin America and may have an effect on "short-term member growth." However, the firm anticipates improved total revenue after "borrower households begin to activate their own standalone accounts and more member accounts are added,"—which is their objective with all plan and pricing changes.
Although the streaming behemoth has increased the number of features available, they are still restricting account usage to a single family. In addition to transferring profiles to new accounts, users can now see which devices are accessing their accounts. They will also have the choice to pay extra to share their account with people who are not family members.