Netflix sent out emails to its U.S. subscribers Tuesday explaining rules for account sharing. It stated that accounts are intended for use by “one household” only.
“Everyone living in that household can use Netflix wherever they are – at home, on the go, on holiday –and take advantage of new features like Transfer Profile and Manage Access and Devices,” said the company, a leader in streaming entertainment services, in a press release.
According to the email, Transfer Profile is an action that will move profiles “to a new membership that they pay for” and the other features will allow members to view and sign out devices that are not from their household. Additionally, Netflix said that members can purchase an “extra member” for $7.99 per month.
That’s $1 more than a standard plan with ads, but less than the premium plans that start at $15.49 per month, according to the Netflix site.
Last October, Audacy reported that Netflix had added 2.41 million net global subscribers, more than it expected, and that its shares jumped 14%. However, CFO Spencer Neumann said during an earnings call that Netflix leadership wanted to see the company grow at a faster rate.
“We’re still not growing as fast as we’d like,” he said. “We are building momentum, we are pleased with our progress, but we know we still have a lot more work to do.”
This spring, the company announced the departure of two top executives. It also announced plans to lay off workers, changes that are expected to decrease Netflix’a annual movie releases.
In April, Audacy reported that the company’s plans to crack down on password sharing had been pushed back.
“We’re working hard to make sure that we do it well and as thoughtfully as we can,” said CEO and Director Gregory Peters.
As the rules are enforced, the company expects to lose some subscribers, said the Audacy report. Eventually, Netflix expects the move to actually help grow its subscriber base.
Netflix subscribers were already not supposed to share their passwords with people outside their household. In a February statement, the company said 100 million households are sharing accounts despite this rule.
Account sharing impacts the company's ability to invest in new programming, it said.
“We recognize that our members have many entertainment choices,” said the company’s recent press release. “It’s why we continue to invest heavily in a wide variety of new films and TV shows – so whatever your taste, mood or language and whoever you’re watching with, there’s always something satisfying to watch on Netflix.”
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