In October, we indicated that Netflix would put an end to account-sharing in early 2023. The media giant has confirmed that this is still scheduled to happen, and you should expect it in January. If you plan to continue sharing your account, you’ll need to pay a bit extra on your account for that benefit.
The main reason Netflix has taken this significant step is that it discovered massive losses in revenue towards the end of last year. With so many friends and families sharing accounts, no one was paying for new ones. During its investigation into the matter, it realized that perhaps its prices were too high.
To deal with the loss of revenue and too few people signing up due to costs, Netflix became creative. It made different payment plans where the cheaper option has adverts to bring in the extra income. If you pay for the full version, you will have no ads and complete access to all the movies and shows.
Unfortunately, sharing accounts isn’t the only reason Netflix is losing money. Other streaming platforms have risen to meet the competition with new annual offers and discounts. Disney+ is one such platform that has extended its reach to other countries. Also, Apple TV now has a new annual plan, and HBO Max is now part of Amazon Prime.
I’m not sure how much stopping the account-sharing will actually help Netflix’s cause. Sure, they’ll make more money for each person using the account, and it may force people to sign up for their own accounts. However, many may just choose to opt for one of the other streaming platforms that aren’t stingy with who gets to use the accounts.
We’ll have to watch Netflix sales in 2023 to see if this strategy actually helps in any way.
