Netflix is gradually introducing a fee for sharing an account in many countries. Despite criticism from users, the concept for the streaming service seems to be working, at least that’s what current figures from the USA suggest.
Netflix is one of the most popular streaming services in the world. In the first quarter of 2023 the number of paying Netflix subscribers was approximately 232.5 million—emphasis on paying in this case. Because the number of unreported cases is likely to be significantly higher. Many users have shared an account for years. So far, Netflix has not only tolerated this so-called account sharing, but even approved it with advertising slogans such as “Love is sharing a password”. Since 2022, however, the provider has been gradually introducing fees for shared accounts – most recently also in Germany. This led to some strong criticism from users, especially on social platforms. Still, Netflix seems to be paying off.
Netflix introduces a fee for account sharing
The streaming service itself estimates that before the extra fees were introduced, around 100 million households used other people’s login data. This results in an enormous sum, which Netflix slips through the rags in case of doubt. This is mainly relevant because Netflix has been for years writes red numbers and getting more and more in debt – not at all unusual in the USA. Currently, the debt is already over 15 billion US dollars. So Netflix has an interest in winning the people who have previously used the service for free through others as paying subscribers.
The company is now gradually introducing additional fees in more and more countries. Anyone who lives together in the same household can continue to use a joint Netflix account, depending on the subscription volume booked. However, if you regularly access Netflix via another network, you either have to create an account yourself or pay an extra fee of 4.99 euros per month. This means that you book a quasi-subscription to the existing account, in which you can take your previous viewing habits and favorites with you, among other things.
For complete information on the new account sharing fee, see our overview article.
What are the consequences of the new Netflix fee for account sharing?
So far, the new fee applies primarily in South America and Europe. Netflix has now announced the launch for the US, the most important market for the streaming service. And indeed, immediately after the announcement, there was a clear effect.
According to the well-known Analysis company Antenna almost 300,000 people took out a new subscription to Netflix in the first four days after the announcement alone. The 100,000 new subscription mark was even broken in two days. A similarly significant increase was last seen at the beginning of the corona pandemic. It is not known whether the new contracts are for the additional account, which incidentally costs 7.99 US dollars in the USA, or whether the users prefer a completely new and individual subscription.
According to Antenna, the number of new subscriptions clearly exceeds the number of cancellations. This shows at least a first trend in how the Netflix fee for account sharing is generally accepted. However, based on the data, it is not yet possible to predict a long-term development.
More action from Netflix
In addition, Netflix is fine-tuning its general subscription model and has been offering a cheaper tariff since the end of 2022. Users then accept advertising for the lower fee. However, the start was a bit bumpy – TECHBOOK reported. And at least in Germany, the great success of the new subscription is still a long way off, as a current TECHBOOK survey shows. On the important US market, however, acceptance is much broader.
In addition, Netflix is finally discontinuing its founding business, the rental of DVDs, this year. The group was founded in 1997 as a per-post rental and sale. Then, in the early 2010s, Netflix became the streaming service we know today.