A lot will change for Netflix users next fall, the streaming service said in a letter to its employees. During that period, Netflix will introduce a cheaper subscription with advertising and you will have to pay extra if you share your account outside the household.
Originally, Netflix would only like to introduce this in 2023 or even 2024, but the streaming service is now speeding up its plans. Two anonymous sources contacted The New York Times with the letter from headquarters. The streaming service has not yet released the new, accelerated plan itself.
Advertising on Netflix: what does that look like?
However, it is not yet fully known what the advertising will look like on Netflix. It is especially important to realize that it is about a cheaper subscription, whereby you pay less than the current price, but on the other hand you will see advertising. If you stay with your current subscription, you will not see any advertising at all. The price of this cheaper subscription is not yet known, but it will in any case be a lot cheaper than the current subscriptions. The cheaper subscription therefore seems to be a good alternative for people who are less financially fit and therefore take advertising for granted.
Additional costs when sharing your Netflix account
The extra payment for account parts is currently being tested in Peru, Costa Rica and Chile. The extra costs for password dividers are now converted between €2,- and €3,-. In addition, password sharers will also be given the option to transfer their profile information to a personal account, so that their viewing history is not lost.
Netflix emphasizes that they don’t want to ban password sharing, but that this is a minor policy change. The new rule does not apply to users within one household. Only users with accounts that are used by multiple households – i.e. people who do not live at the same address – will notice the upcoming measures.
If you want to share your Netflix account with your sister, who lives in another city, that’s ideal. We’re not trying to forbid that sharing, but we’re going to ask you to pay a little more to share with her so that she gets the benefit and value of the service, but we also get the income that comes with that viewing.
Greg Peters on behalf of Netflix
Netflix can earn about $1.6 billion a year with the new measure, experts calculate.
