Netflix plans to crack down on password sharing by 2023. After the streamer gave users the ability to transfer their profiles to new accounts, the streamer says it will be letting subscribers create sub-accounts starting next year, in line with its plans to “money out of account sharing.” more widespread.
That’s part of Netflix’s earnings results today, which say the company added 2.4 million subscribers this quarter as the streaming service looks to roll out its ad-supported tier and limit password sharing next month. The streamer says it’s grown by 104,000 paid subscribers in the US and Canada over the past three months, up from 73,000 in the same period last year, and says it remains committed to the “bingeable release” model.
It also piloted a way for users in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic to purchase additional “houses” for accounts located outside of the subscriber’s main household. Recently, Netflix introduced a profile transfer tool that allows users to easily transfer their personalized recommendations, viewing history, My List, saved games, and other settings to a new account after testing it in other countries. A report from last month rest of the world showed frustration from users subjected to the tests in Latin America.
The streaming giant announced last week that it would launch its ad-supported tier, called Basic, on November 3 in the United States, Australia, Brazil, Canada, France, Germany, Italy, Japan, Korea, Mexico and Spain and the United Kingdom. Netflix is working with Microsoft to bring ads to users and says they will last between 15 and 30 seconds. However, this new tier doesn’t give subscribers access to Netflix’s entire library due to licensing restrictions. Basic subscribers are also unable to download anything to their devices and only view content in HD. The company’s ad-supported tier comes notably ahead of Disney Plus, which is scheduled to go live on December 8th.
As competitors like Disney, Warner Bros. Discovery, Paramount, and NBC build their content libraries and paying subscribers, Netflix remains confident that its business model will outperform its peers. “It’s difficult to build a large and profitable streaming business – our best estimate is that all of these competitors are losing money on streaming, with total annual direct operating losses this year alone could be well over $10 billion compared to our + $5-6 billion in annual operating income.”
Disclosure: The edge recently produced a series with Netflix.