
There is a new policy for Netflix users. Users have to set a ‘primary location’ where every member of the household using the network in that area can log in to the same Netflix account. Users will have to pay more if they want to add profiles of people who do not live in that particular house and are referred to as ‘extra members’. The policy was first introduced in Chile, Costa Rica, Peru, Argentina, Dominican Republic, El Salvador, Guatemala and Honduras. Canada, New Zealand, Portugal and Spain are the additional four nations where Netflix is imposing restrictions on password sharing. The price to add a new person will be $5.96 in Canada, $5.09 in New Zealand, and in Portugal and Spain, respectively, $4.30 and $6.45.
Netflix estimates one hundred million people around the world use shared accounts. Netflix’s claimed that its ability to invest in new content was limited by the loss of revenue from shared accounts. It reported that it intends to expand the new strategy to more nations in the coming months.
In 2022, Netflix saw its subscriber numbers fall sharply due to concerns about subscription streaming fatigue and increased competition from Disney or Apple.
In my opinion, it is difficult to predict whether Netflix’s new policy will improve its market situation. Firstly, there are plenty of options for consumers to choose from in the streaming platform industry, so they do not have to choose Netflix. Furthermore, there is a lack of content for some users. Netflix is removing many films and cancelling many series due to lower profits. In addition, introducing the new policy will make a lot of consumers dissatisfied. Many of them are friends who share the account and do not live together, so they would have to pay much more from now on, and that may prompt them to cancel their subscriptions. I have already read plenty of Netflix consumers commenting that when the day comes for the new policy to be introduced in their country, they will immediately cancel their subscriptions. On the other hand, the new policy will make people pay more, and therefore Netflix can create more content, which many people do not find satisfying at the moment.
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References:
https://edition.cnn.com/2023/02/09/media/netflix-password-sharing-crackdown/index.html
https://www.polygon.com/23591400/netflix-password-sharing-policy-rules