In its financial report for the fourth quarter of 2022, Netflix said that by the end of the first quarter of this year, it will deploy the paid sharing feature on a large scale.
According to the report, Netflix says today’s widespread account sharing is undermining its ability to invest and build businesses. While the terms of use limit Netflix usage to one household, the company is seeing a change as members share their accounts more widely.
As Netflix rolls out the new paid sharing feature, members in many countries will have the option to pay more if they want to share their Netflix account with people they don’t live with. As is the case now, all members will be able to watch while traveling , whether on TV or mobile devices .
The company said this transition will have a negative impact on the number of subscribers in the immediate future. However, Netflix believes that this model will soon achieve the same success as in Latin America, with engagement increasing over time as it continues to offer more new exclusive shows.
Netflix is currently the market leader in streaming services with a huge content library, exclusive deals with content creators and producers. Despite the drop in subscribers in the first half of 2022, Netflix proved resilient to the competition by beating Q4 earnings expectations.
Although not as expected by analysts, Netflix’s Q4 2022 financial results are still impressive. The company beat expectations in terms of revenue, operating profit, and paid subscription user growth. Netflix also announced that its chief executive officer and founder will be leaving the role, taking on the role of executive chairman instead.