Netflix will begin cracking down on password sharing in the US starting in early 2023, reports The Wall Street Journal.
This summer, the streaming platform tested out an “extra home” fee in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras after first rolling it out in Chile, Costa Rica, and Peru. Based on those tests, the new monthly fee is expected to cost $3 per extra home in the US.
Netflix is well aware of how the crackdown will alienate customers. “Make no mistake, I don’t think consumers are going to love it right out of the gate,” Co-CEO Ted Sarandos told investors in early December.
To that end, the company has reportedly discussed gradually implementing the change. With Netflix losing subscribers throughout 2022, however, the streamer has every reason to push forward. Some estimates have forecasted the initiative could generate an additional $721 million in revenue next year in the US and Canada,
In November, Netflix launched its Basic with Ads plan, which Sarandos has described as a potential “softer landing” for first-time subscribers. At $6.99 per month, it offers a cheaper alternative to the $9.99 Basic plan, but the ad-supported tier also locks users out of some of the most popular shows and movies due to licensing restrictions.
