Netflix was for a long time alone at the top of the streaming world, but in recent years has received competition in the form of Disney+, Amazon and HBO Max, among others. In connection with that, growth has stagnated and the streaming giant is working to find solutions, including by charging for account sharing and offering additional subscription options that are partially funded by advertising. The company’s quarterly report gossips that the global rollout of paid account sharing is expected to take place already at the end of the first quarter of the year.
“While our terms of use limit use of Netflix to a household, we recognize this is a change for members who share their account more broadly. As we roll out paid sharing, members in many countries will also have the option to pay extra if they want to share Netflix with people they don’t live with.”
In 2022, Netflix has tested paid account sharing in parts of South America, where subscribers can add additional users outside the home for the equivalent of SEK 30 a month. What the price picture will look like in Sweden is currently unknown, but is expected to be at the same level as during the testing. Netflix points out that the change may result in some people being scared away from the service due to higher costs, but in the long term the economy is expected to benefit from the decision.
In the quarterly report, it also appears that Netflix’s investment in advertising-funded subscriptions has begun to bear fruit. Earlier indications pointed to lukewarm reception and Netflix being forced to pay back ad costs, but by December 15 percent of Netflix’s new subscribers had opted for the ad-funded option over Netflix’s more expensive subscriptions.
