(NEXSTAR) — Netflix warned months ago that it would start cracking down on password sharing in the United States after rolling out the changes in several countries, including Canada. Company executives offered another hint at how quickly Netflix will process password sharing in the US, albeit later than expected.
Netflix is exploring ways to crack down on password sharing, including login verification in 2021, and Use of sub accounts For people living outside the account holder’s home in 2022, which was tested in Chile, Costa Rica, and Peru. In early February, Netflix expanded its paid account sharing to Canada, New Zealand, Portugal and Spain.
Some paid versions of Password Sharing were expected to arrive in the US by the end of the first quarter — a date that has since passed.
during the first quarter Earnings call On Tuesday, Netflix Co-CEO and Director Gregory Peters said the recent paid account sharing rollouts “have gone well” and that the company has “learned from this latest set of launches about some improvements we can make.”
He went on to acknowledge the delay in the US rollout — “it would have been better to take a little extra time” — and said that a “new enhanced version” of paid password sharing will launch at scale in the second quarter.
This means that by the end of June, sharing a Netflix account will be much more complicated than just sharing a login with someone.
It’s not yet clear exactly how paid password sharing will work in the US
In other countries, Netflix has introduced the aforementioned subsidiary accounts, which allow account holders with a Standard or Premium plan to add up to two people who live outside their home to their plan for a smaller additional fee. Netflix did not say how much this fee is in the US
When Netflix introduced affiliate accounts in Chile last year, it charged an extra member $2.99. In Canada, Netflix will charge $7.99 CAD, which is about $5.95 in US dollars.
Netflix also knows that users may leave amid the shift to paid sharing. in Message to shareholdersExecutives noted that some in Latin America canceled their accounts amid the password-sharing campaign, but new member registration eventually increased with the use of sub-accounts and new users.
Peters said Tuesday that while the company knows some US users “won’t convert” when paid sharing begins, those users will “essentially represent a group of people that we can then pursue to improve our offering” with movies, series and games.
“It’s worth noting that this isn’t going to be a universally popular move, so there will be existing members who are unhappy with this move. We’re going to see some cancellation reaction to that,” Peters said on a conference call with investors in January. We raise prices.”
Since rolling out the changes in Canada and three other countries, Netflix hasn’t said what actions it will take if subscribers continue to share accounts outside their home.
Also on Tuesday, Netflix announced that it would DVDs are no longer mailedThe service ends after 25 years.
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