Netflix announced that it would crack down on password sharing early in 2023.
Once the new account-sharing policy goes into effect, any user who shares Netflix logins outside their household must pay an extra monthly fee.
The streaming giant revealed such plans a few months ago. However, the details have not been clarified until now.
However, Netflix said that users would be able to transfer their profiles to new accounts through the “Profile Transfer” option. Also, starting next year, subscribers will be able to create sub-accounts.
The move is part of the company’s plans to “monetize account sharing,” as it previously revealed that at least 100 million households shared subscriptions. The figure accounted for just under half of its total user base.
However, the streamer has not clarified how much subscribers who share their passwords must pay nor indicated the exact date on which the policy will take effect.
The announcement comes after Netflix unveiled its long-awaited affordable ad-supported subscription plan.
The new plan, first introduced in April, will have the same features as the platform’s basic plan but with a few small differences.
Last week, the streaming company said its new basic tier with ads would cost just $6.99 per month, $3 down from its current price of $9.99.
The new cheap plan will be launched on November 3. Those who subscribe will see ads between 15 and 30 seconds before and during the movies and series are played.
Netflix said that, on average, four to five minutes of video ads would play per hour. However, the streamer will avoid playing the same ads many times.
Moreover, the new basic tier with ads will only be available in 12 countries, including the United States, Canada, Australia, Brazil, France, and the United Kingdom.
Speaking to the media, Netflix’s chief operating officer Greg Peters said: “Basic with Adverts is everything people love about Netflix, at a lower price.”
The Profile Transfer feature, which will be an exit route for shared accounts’ users, began rolling out this week, allowing subscribers to migrate their profiles with their favorites and recommendations to different accounts.