The long-promised crackdown on password sharing by Netflix has begun in important markets like the US and the UK.
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In the UK, a Netflix subscription can range in price from £4.99 to £15.99 each month.
The streaming behemoth announced that it was informing consumers that sharing their account outside of their homes will cost them an extra £4.99 per month, or $7.99 in the US.
The goal of the action is to increase subscribers.
However, some people are balking at the expense of several nations where it has previously undergone testing.
According to Kantar, it lost more than a million members in Spain in the first three months of the year after charging 5.99 euros (£5.27) for an extra account.
Customers in 103 countries and territories, including Australia, Brazil, France, Germany, Mexico, and Singapore, received an email from Netflix on Tuesday with information regarding sharing accounts.
As it expands its program, the business has already cautioned investors that cancellations could occur; nevertheless, it added: "Longer term, paid sharing will ensure a bigger revenue base from which we can grow as we improve our service."
It was previously stated that in Canada, where the modifications were implemented in February, its premium membership base has grown since the changes were made, and revenue growth has accelerated.
Despite it being against its corporate guidelines, Netflix had previously calculated that more than 100 million households shared passwords.
As its subscriber growth slows and rising competition threatens its hegemony over the streaming market, the firm wants to capitalize on this audience in order to increase revenue.
Heavy hitters like Disney and Amazon have entered the fray with their own services, and Netflix is up against a bevy of other competitors.
These industry titans in the entertainment industry are competing for clients, many of whom have been feeling the pressure from the rapid rate of general price increases.
In the three months leading up to March, Netflix lowered pricing in 116 countries in an effort to entice customers with a less expensive streaming option through advertisements.
Additionally, it has been extending its paid sharing plan, which it began testing in a few nations last year.
The scheme now has access to some of the most crucial marketplaces for the business thanks to the move to alert customers.
There are 233 million Netflix subscribers worldwide.
