The decision is made. After multiple tests and years of rumors, Netflix has announced that it will be actively tackling password sharing by 2023. The first step has already been taken.
The dreaded news was shared during the company’s latest quarterly earnings release.
Netflix is doing well again
Speaking of which, the streaming service is already doing a lot better. After a few mediocre quarters, resulting in major layoffs and blows on the stock market, the numbers now look a lot rosier.
Netflix gained 104,000 paid subscribers last quarter. In comparison: in the same period last year there were 73,000. A stark contrast from early this year, when the company announced it had lost subscribers for the first time in a decade.
From tests to official
Anyway, back to sharing passwords. This year, Netflix started a striking test in Argentina and Guatemala, among others. Users who tried to stream a movie or series in a different location than the main owner of the subscription in question were told that they had to pay for a ‘sub account’ themselves.
The streaming service has tested various approaches, but now the message is officially clear: password sharing will be definitively addressed in 2023. Netflix launched the first step in that direction last week.
First step for new accounts
It is now possible to use a special Profile Transfer-tool to export your personal recommendations, watch history, watchlist and saved games to a new account. It should be clear that this will create the infrastructure to enable account-sharing users to move to their own paid account as smoothly as possible.
Add to that the cheaper subscription with advertising that will be launched in November, and you get a clear overall picture.
Sharing accounts in 2023
The foundation for 2023 is being laid: ‘Hey, we see that you are sharing an account, that is not the intention. With this button you can easily transfer your viewing history to a new account. Don’t worry, that’s extra cheap thanks to our new subscription!’
The exact timing and operation of the measures has not yet been announced. We will undoubtedly hear more about this in early 2023. To be continued!
Rock hard numbers
Meanwhile, Netflix brags about its position in the streaming landscape: “It’s hard to build a large and profitable streaming business – our best guess is that all our competitors are losing money on streaming, with total annual direct operating losses just this. years that could be well over ten billion dollars, compared to our five to six billion dollars in annual profit.”
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