Netflix reveals ‘paid sharing’ option for multiple profiles on the same account

Netflix is ​​introducing a ‘share payment’ option for multiple profiles on the same account, as the streaming giant plans to crack down on password sharing ‘earlier this year’.

Plans to alter the way people use the streaming giant could leave millions unable to watch their favorite shows and movies if they share an account with a friend or family member.

Under the new rules, people who have been watching Netflix using someone else’s account will have to create their own logins and pay for their own access.

Testing of the new feature is already underway, with platform-wide rollout expected to go live at the end of March.

What do YOU ​​think about Netflix’s new rules for sharing your account? Email miriam.kuepper@mailonline.co.uk

To allow people to share an account, a new option will be added, ‘paid sharing’, which will allow multiple profiles but will cost less than a full subscription.

Netflix stated last week: ‘Later in the first quarter, we hope to start rolling out paid sharing more broadly.

“Today’s widespread account sharing (more than 100 million households) undermines our long-term ability to invest in and improve Netflix, as well as build our business.

“We’ve been hard at work creating additional new features that enhance the Netflix experience, including the ability for members to check which devices are using their account and transfer a profile to a new account.

“As we roll out paid sharing, members in many countries will also have the option to pay more if they want to share Netflix with people they don’t live with.”

The change is supposed to boost Netflix’s revenue in 2023.

Its chief financial officer, Spencer Neumann, said one of the goals for this year is to “nudge” viewers who use subscriber-shared passwords to pay their way.

He added: “We have great confidence in our ability to accelerate revenue throughout the year as we scale ads and launch paid (account) sharing.”

Netflix ended last year with 230 million subscribers worldwide, exceeding expectations with hits like Wednesday and Harry & Meghan attracting new viewers.

The streaming giant said: “2022 was a tough year, with a rocky start but a brighter finish.”

Netflix finished last year with 230 million subscribers worldwide, exceeding expectations with hits like Wednesday (pictured)

Netflix show Harry & Meghan (pictured) drew new viewers

Netflix said it attracted 7.7 million new members in three months

The new titles helped lure users to a new, lower-priced “Basic with Ads” subscription as consumers cut back on entertainment spending amid soaring inflation and an uncertain economy.

Revenues for the October-December period of $7.85 billion were in line with estimates.

Netflix insists that counting new users is no longer the most important criteria for evaluating the health of the company and that revenue should be the main metric.

“What may be getting lost in the mix is ​​that a certain number of new subscribers — we don’t know how many — probably got into Netflix’s ad-supported tier,” said Paul Verna, principal analyst at Insider Intelligence.

“That means, most likely, lower average revenue per subscriber, which is a metric Wall Street will pay more attention to as Netflix’s ad business grows,” he said.

Netflix faces stiff competition from wealthy rivals, including Disney+, which has also introduced ad-based subscription.

But despite the challenges, Netflix is ​​one of the rare tech giants that has earned Wall Street’s trust with its share price nearly 50 percent in the past six months.

Other tech giants and Disney have been hit in the markets as companies lay off employees and cut costs after a massive wave of hiring and spending at the height of the coronavirus pandemic.