San Francisco, United States:
Netflix said on Wednesday that it is charging a fee to subscribers who share their accounts with people who do not live in their homes.
The US-based steam service has long taken a quiet approach to sharing passwords with users with family or friends, but has recently plunged into quarterly results that have cooled subscriber growth.
Meanwhile, competition in the streaming TV market has intensified, especially since Disney +, as the cost of producing the prized original show has also risen.
In the coming weeks, Netflix will begin offering subscribers in Chile, Costa Rica and Peru the opportunity to add two people to its “sub-accounts” for a fee of $ 2 to $ 3 a month, according to Chengyi Long, director of product innovation at Netflix.
“We recognize that people have a lot of entertainment options, so we want to make sure all the new features are flexible and useful for members, that their subscriptions fund all of our great TV and movies,” Long said in a blog post.
Silicon Valley’s streaming titan has been working on “ways to share it outside of home” for subscribers, paying a little more, he said.
Netflix said it will allow people who already share accounts to transfer profile and history information to new sub-accounts.
Long said the company will look into the availability of the new model in all three countries before making changes elsewhere.
Netflix ended up with 221.8 million subscribers last year, below the target, after the rise in coronavirus blockages that kept people at home and on the platform.
Things aren’t looking any better in the first quarter of 2022, and Netflix’s latest earnings report said the company expects to add only 2.5 million subscribers.
Most of the 8.3 million subscriptions added at the end of last year came from outside North America, according to the streaming service.
Netflix recently announced a subscription price hike in the United States, with basic options now costing $ 9.99, and the most expensive up to $ 19.99.
(This story was not edited by NDTV staff and was automatically created from a union feed.)