The decision comes after the company tested out password-sharing fees in Canada and three other countries worldwide.
Sharing a Netflix account with someone else outside your home? You’re not alone, and Netflix isn’t happy about it. The company is planning to start charging you extra for each additional user as early as the summer of 2023.
In a detailed letter to shareholders, Netflix explained the plans for a broad rollout, including the U.S., as one that will grow the paid membership base, therefore increasing profits, rather than reduce these metrics.
Paid sharing was rolled out in the first quarter of 2023 in Canada, New Zealand, Spain, and Portugal. „In Canada, which we believe is a reliable predictor for the US, our paid membership base is now larger than prior to the launch of paid sharing and revenue growth has accelerated and is now growing faster than in the U.S.,“ the letter reads.
This rollout comes after paid sharing tests conducted in Latin America in 2022 were rendered successful.
