Netflix To Charge For Customers Sharing Password Beginning 2023

(RTTNews) - Streaming platform Netflix announced on Tuesday that it will officially start charging from customers who use the account sharing service, after giving hints of a crackdown during the recent months.

In a letter sent to its shareholders, the company said that it plans to start "extra member" sub-accounts in 2023, which will require users to pay additional fee for friends and family members using the service through their account.

While Netflix hasn't specified how much the extra member fees will be in the US, it is likely to follow a beta model already in select Central and South American countries including Costa Rica, where a Netflix sub-account costs $2.99, or one-fourth of the $12 monthly subscription fee, as per reports.

According to a March survey done by the Leichtman Research Group, an estimated one-third of Netflix subscribers in US share their log-ins with their relatives and friends. The new policy could bring in good revenue for the streamer, which has had a tumultuous year.

Though the company reported a turnaround on Tuesday and got more than 2 million new subscribers, it has lost subscribers in three consecutive quarters and has struggled ever since.

Netflix CEO Spence Neumann said on a call with investors on Tuesday, "As it regains momentum, charging for extra members allows the company to start "monetizing all that unpaid viewing."