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Netflix to charge global members sharing their accounts an additional fee, following tests –

In the wake of Netflix’s consumer losses, the company announced today during its first quarter earnings call that it will expand its trial which will charge members higher prices if they are engaged in sharing accounts with people outside their homes. The company first tested the brand in March in Chile, Costa Rica and Peru, but now says it plans to implement the solution in global markets, including the United States, within a year.

The developer has made it clear that it will need to continue to replay the feature for about a year or more, to ensure it gets the right balance compared to the extra charges charged by customers who share their Netflix account with other outside users. their home.

“In fact, we have been working on this for two years. About a year ago, we started doing some light experiments that… informed our thinking and helped us build the systems we are currently delivering, “said Netflix production chief Greg Peters.” We did our first national tests. great, but it will take time to work on this and we will adjust that balance. “

At the moment, Standard and Premium customers in Netflix’s test markets are being given the option to add “sub-accounts” to their service to people they do not live with. Each sub-account will have its own logos and recommendations – but they also have their own Netflix login and password. This sets them up to become an established member with a unique account for the future. If they choose to move, their viewing history, viewing list (“My List”), and specific tips will be transferred to their account and billing information. (And since the member sharing their account now has to pay a lot, they can choose to push the free service.)

The company has previously stated that the solution does not rely on location-based data, such as GPS. Instead, it takes advantage of the same information it uses to provide its service to today’s end users, including IP address, device identification and other information about devices signed into a home-based Netflix account. This way, Netflix can recognize when there is a regular sharing happening outside the home.

Today, Netflix estimates that there are nearly 100 million households around the world who share accounts, and more than 30 million of them are in the United States and Canada alone.

Netflix said that by asking members who share their accounts to pay more, she hopes to hit the right balance between still sharing permits to take place while also helping to generate revenue for anyone watching receiving value for his services. The real dollars and cents that will translate into “prices” will, of course, not yet be determined – and they may vary across markets.

In its experimental markets, the additional cost for non-home members is 2,380 CLP in Chile, $ 2.99 USD in Costa Rica and 7.9 PEN in Peru. This is more expensive than a full Netflix account plan, but it is also more expensive than previously shared on a Netflix account for free.

This is not the only way Netflix plans to make money from its customer base. The company also said it would present a plan to support the ads.