Top streaming service, Netflix, has declared that it will launch its paid password sharing “later in” the first quarter (Q1) of this year.
“While our terms of use limit Netflix use to a household, we recognize this is a change for member who share their account more broadly,” the company said in earnings reports released on Thursday.
“As we roll out paid sharing, members in many countries will have the choice to pay extra if they want to share Netflix with people they don’t live with,” the company explained.
The streaming giant expects some “cancel reaction in each market” after starting paid password sharing, but it will eventually result in “improved overall revenue.”
Additionally, the company said that Greg Peters had moved up from COO to become Ted Sarandos’s co-CEO and that Reed Hastings had stepped down from his position as co-CEO of Netflix to take on the role of executive chairman.
Meanwhile, it was revealed last month that Netflix planned to discontinue its password sharing option in early 2023.
The streaming giant had long been aware that password sharing is a problem that hurts its profitability, but the increase in subscriptions in 2020 caused the firm to defer addressing the issue. Due to last year’s income drop and the platform’s first subscriber decline in ten years, Hastings felt it was time to address the issue.
The world’s largest streaming service stated in October of last year that all customers will now have access to the “Profile Transfer” feature, which prevents password sharing.
