Netflix will charge extra for shared accounts in the U.S.

Netflix will charge extra for shared accounts in the U.S.

Netflix is about to begin one of its most difficult tests as it brings its crackdown on shared accounts to one of its most important markets: United States.

The company has sent a letter to its shareholders noting that they expect to launch the extra payment for out-of-home accounts in North American territory by the second quarter of this year.

Key Moment

In his message, Netflix was proud to have expanded this measure to Canada, New Zealand, Portugal and Spain earlier this year.

The tool allows primary account holders to pay an additional fee each month to share their service of Netflix With up to two people outside your home.

In all, if the user does not want to pay such amount, he can transfer the entire profile to a new account with full payment.

“An account of Netflix is intended to be shared within a household (people who live in the same place as the account owner),” the company says on its support page. “People who are not in your household will need to sign up for their own account to watch. Netflix“.

Threats and weaknesses.

In the past, Netflix estimated that more than 100 million non-paying households access its service through free shared accounts.

The company says the practice limits its ability to invest in new content. It is also aware that the decision to restrict account sharing is likely to lead to churn.

The expansion of paid account sharing comes on the same day that. Netflix said it would end its DVD rental business after 25 years in September.

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Daniel Chapman