The sanction that Netflix will apply for those sharing accounts has been found out

Currently, Netflix has approximately 222 million subscribers worldwide and according to company estimates, an additional 100 million households use the service through a shared password. And even if until now turn a blind eye, it could change soon.

In March of this year, the streaming platform began testing a new feature in Chile, Costa Rica and Peru that allows adding accounts for up to two people who do not live in the same house for a additional monthly fee for the holder.

Through this system, Netflix enabled a new function in the regions mentioned to “add additional members.” It is available on Standard and Premium service plans.

Following the circulation of these rumors, Netflix shares fell 47%despite the fact that it has not yet launched the controversial end of shared passwords, which will undoubtedly infuriate many subscribers.

Data managed by the company indicates that nearly half of its subscribers share a password. In particular, 100 of its 222 million users.

When he talks about sharing, he is not referring to family accounts used by parents and children, within the same roof, but to the same account used from different homes.

“If you have a sister, say, who lives in another city, and you want to share Netflix with her, that’s great,” Greg Peters, Netflix’s chief operating officer, said during the earnings call. .

“We’re not trying to close that exchange, but we’re going to ask you to pay a little more to share with him and get the benefit and value of the service, but we’re also getting the revenue. Associated with that watch,” he added.

According to Peters, it looks like this new direction will begin rolling out worldwide in 2023. CEO Reed Hastings also told analysts that the company will consider a lower priced subscription option with advertising.

“To set your expectations, I think we’ll spend a year or more on iteration and then implement all of that so we can launch that solution around the world, including markets like United United States. “

general anger

Many users point out that the reason they agree to pay for a membership is because there is a possibility to share the account with other acquaintances.

The mood in the market has clearly changed. The strong reaction could set the stage for another period of turbulent profits, at a time when investors are on edge after disappointing results from big banks.

Even in a tweet in 2017, the streaming giant prompted this practice, but now, with the loss of subscribers in its last quarter – for the first time in the last decade – and declining revenue, it seems Netflix to end the possibility. .to share a password.

Another striking fact from the survey is that nearly 80% of Americans who use someone else’s password will not create their own account. That suggests that the strategy of adding more users could be a boomerang.

For now, there are a few questions floating around that will be revealed as the final deployment approaches, such as what might happen if the owner of the shared account decides not to pay the additional fee.