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Netflix to charge users extra in password-sharing crackdown from 2023

Netflix to charge users extra in password-sharing crackdown from 2023

American streaming giant, Netflix, has reportedly announced that it will be starting its cracking down on the practice of password sharing amongst users beginning of next year, with those sharing their login credentials to be charged extra.

During its earnings call, Netflix stated that after listening to the feedback from consumers, the company will offer borrowers the ability to transfer their profile into their own accounts.

Meanwhile, sharers will be able to manage their connected devices more easily and also create sub-accounts for extra members, if they intend on paying for friends or family.

Netflix expects that the profile transfer option will become especially popular in countries where it offers low-priced ad-supported plans.

While the extra cost has not yet been disclosed, as per the tests it has conducted in Latin America, around a 25% increase or £4 ($4.5) a month can be expected.

Netflix has been looking to increase revenues after suffering a loss of around 200,000 subscribers in the first quarter this year, and almost a million in the second quarter.

However, this trend changed in the third quarter when it reported a net gain of 2.41 million subscribers, and expects 4.5 million new subscribers to join in the fourth quarter.

Along with the crackdown on password-sharing, the video streaming service also announced the launch of its new ad-supported tier, named ‘Basic with Ads’ in the UK, costing £4.99 ($5.63) monthly on 3rd November.

While users will still be able to watch content on their TV or smartphones, the video quality will be limited to 720p/HD under the Basic and the Basic with Ads plans, with ads of around 4-5 minutes per hour.

Initially, the ads will last between 15-30 seconds that will appear before and during the content, whether film or series, but due to licensing restrictions, some movies and TV shows will be unavailable.

Moreover, the option of streaming from multiple devices or downloading titles will be unavailable, which the company said is due to the technical complexities in showing adverts offline.

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Pursuing her professional career as a content writer for over two years now, Pooja Sharma is endowed with a post-graduate degree in English Literature. The articles that she writes are a balanced blend of her ever-growing love of language and the technical expertise that she has gained over the years. Currently Pooja pens insightful articles for Newsorigins and numerous other websites, covering subjects such as business, finance, and technology.