Netflix brings in extra $4 charge for EACH additional account with new Profile Transfer feature

Netflix will charge up to $4 per month for each additional profile appearing on each account starting next year.

The new measure was announced Tuesday during Netflix’s quarterly earnings call, after a year of plummeting profits and subscriptions.

You will be charged between $3 and $4 for each additional user profile that appears in the ‘who’s watching’ window that opens when you first log into Netflix. The account holder’s profile is not subject to the additional fee.

The measure was first launched in April after a terrible revenue report, according to the New York Post, and comes after Netflix tried to find ways to prevent users from sharing accounts without driving them off the platform.

Netflix will charge up to $4 for each additional profile appearing on each account from next year

On Netflix, one account can host up to five ‘profiles’, each individually named and curated for one person

Netflix described the new measure as a “thoughtful” way to solve the account-sharing problem they’ve been battling for years.

“We’ve come a long way in monetizing account sharing and we’ll be rolling this out more broadly in early 2023,” Netflix said in the announcement.

“After listening to consumer feedback, we’re going to give sharers the ability to more easily manage their devices and create sub-accounts if they want to pay for family or friends.”

While Netflix has always officially required users not to share their passwords with other users, little has been done to enforce the rule before.

Reports show that account sharing costs Netflix about $6 billion a year, according to the Post.

Over the summer, Netflix experimented with charging for additional profiles and tested the idea in Latin America, where password sharing was a particularly rampant problem.

The large-scale rollout of the move now has the potential to make or break Netflix, which has struggled to find a way to support its plummeting profits while maintaining its subscription-based revenue platform.

Analysts have said Netflix is ​​doing everything it can to prevent users from being exposed to ads or selling their data, but many predict it’s only a matter of time before the company is forced to do so.

Netflix’s stock price has fallen more than 65% since the beginning of the year after announcing the loss of 200,000 subscribers in April. By the end of Q2, another 970,000 had fled the platform.

Netflix has previously blamed widespread abuse of user-sharing passwords as one of the leading causes of subscription numbers flagging, saying more than 100 million households benefit from accounts paid for by others.

In addition to the new profile fee, Netflix also introduced a feature called Profile Transfer this week, which allows users to easily migrate their profile to a new account.

It means that users’ favorites, recommendations, and viewing history are preserved when profile owners start their own Netflix account.

Netflix says the tool allows profile holders to easily transfer their profiles from the account of someone they no longer have contact with, such as an ex-boyfriend.

But it also encourages people with profiles on Netflix to set up – and pay for – their own account, rather than ‘freeloading’ someone else’s.

Netflix said the “in-demand” feature is now rolling out to all users around the world and an email will be sent as soon as it’s available for each account.

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Netflix said the “in-demand” feature is now rolling out to all users around the world and an email will be sent as soon as it’s available for each account.

The platform will also be introducing an ad-based subscription option starting in November that will cost $6.99 per month.

Netflix originally allowed multiple profiles on an account so that multiple members of a household, such as children, can enjoy content without having to start their own Netflix account and pay the monthly fee.

But nothing stopped that account from being used in multiple households, even though Netflix’s terms of service require users of an account to live in the same household.

It basically meant that five people living under five different addresses could have their own profile under one account.

That deprives Netflix of a potential revenue stream and “undermines our ability to invest in and improve our service over the long term,” Netflix said.

How Netflix became a pandemic darling with its original content before it lost 200,000 subscribers and investor confidence

1997 Marc Randolph and Reed Hastings launch Netflix after discussing ways to emulate Amazon’s internet sales model

1999 – Randolph and Hastings Refuse to Sell Netflix to Jeff Bezos After About $15 Million Offer

2000 – Hastings and Randolph offer to sell Netflix to Blockbuster for $50 million. Blockbuster CEO John Antioco declined to say: ‘The dotcom hysteria is completely overblown’

2002 Netflix goes public and sells 5.5 million shares for $15 a share

2005 – Netflix hits more than $500 million in revenue and ships 1 million DVDs daily from its selection of more than 35,000 movies

2007 – Netflix launches its streaming website, the same year it delivers its billionth DVD

2008 – All Netflix customers with a DVD rental subscription get full access to the online streaming service for free

2009 – Streams on the Netflix website surpass all DVD shipments

2010 Netflix reaches $1 billion deal to stream Paramount Lionsgate and Metro-Goldwyn-Mayer movies

2011 – In the same year that Netflix becomes the largest source of Internet streaming in North America, it splits its existing subscription model and offers separate subscriptions for DVD rental and streaming

2012 – Netflix launches in select countries across Europe and signs a streaming deal with Disney and The Weinstein Company

2013 – Netflix starts producing and releasing original series

2014 – Subscription fees are increased from $7.99 to $9.99

2017 – After four years of producing original content, Netflix announces plans to make half of its library consist of original content by 2019 by investing $8 billion in the project

March 2020 – Number of new accounts skyrockets through May as much of the world goes into lockdown due to the Covid pandemic

March 2022 – After the invasion of Ukraine, Netflix announces to stop all streaming services in Russia at the cost of 700,000 subscribers

Apr 2022 – Netflix’s announces it lost 200,000 subscribers in the first quarter. Hours later, investor Bill Ackman raises $1.1 billion in funding, costing Netflix $50 billion overnight

October 2022 – Netflix announces that it will charge up to $4 for each profile on an account, in addition to the account holder’s. Netflix also announces the rollout of an ad-based option for $6.99 per month

Jacky

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