The day of the apocalypse for many Netflix users is coming: the company revealed, in its latest tax report, that it will start to charge for sharing passwords coming soon. The company’s expectation is to launch the novelty still in the first quarter of 2023until the end of March.
Netflix’s new charge is already being tested in some countries and will now be released to everyone soon. In its document for investors, the streaming company explains: the new fee is aimed at those who share the Netflix password with people in different households, something that is done in 100 million households, according to company estimates.
According to Netflix, password sharing is harmful to the company by limiting revenue from subscriptions and preventing “the ability to grow in the long term” for new investments in the streaming platform. The company is already preparing for the launch of the function and points out that it even launched new features to make life easier for users in this transition, such as an option to transfer profiles to new accounts.
Netflix expects wave of cancellations
While the company is hopeful that the extra payment will help with long-term finances, the tendency is for some users to leave the service after the arrival of the novelty. In its shareholder statement, Netflix said that expect a wave of cancellations after the launch of paid password sharing.
“As we work through this transition — and some users stop watching because they don’t convert to new payers — short-term engagement could be negatively impacted,” the company explains. However, following the experience of tests carried out by Netflix in Latin American countries, the company believes that more users will start paying for the service over time.
It is worth mentioning that Netflix has not yet disclosed the price and launch date of the extra charge for the Brazilian market, despite being testing the solution in nearby countries, such as Chile and Peru. According to estimates made by TecMundo, sharing a password can cost around R$10 in our country.