Netflix Allowing ‘Extra Members’ But At Additional Cost: Another Exodus Loading?

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Netflix Allowing ‘Extra Members’ But At Additional Cost

Netflix announced its days of shrinking subscriber numbers might be over, and investors rejoiced. However, the company also indicated that it would start penalizing the primary, paying subscriber for letting non-paying members stream content for free. Needless to say, this decision to impose a financial burden on a loyal subscriber, could once again start the mass exodus, which the company indicated, has stopped for now.

 

Netflix Will Crack Down On Password-Sharing By Imposing Fines?

Netflix has confirmed that it will start trying to convert as many non-paying members into paying subscribers globally. The streaming giant already has a trial program called "Paid Sharing". Moving forward, a primary account holder will have to pay for a non-paying member with an additional fee under the newly introduced "Extra Member" feature.

Paid Sharing essentially burdens the primary, paying subscribers with an additional fee for letting non-paying members stream content via the main account. Now subscribers will have the option to pay for additional homes or extra members.

Netflix is well aware that several profiles within an account aren't in the same home as that of the primary account holder. It seems the company may initially restrict all accounts, and the profiles they contain, to just one location or household. Thereafter, the primary subscriber will be able to "add extra members" for an additional fee imposed per month.

Netflix hasn't confirmed how much it plans to charge extra. However, the company has been running trials in some regions. It appears the primary account holder might have to pay around $3 (approx. Rs 240) per additional home, member, or profile.

Will Netflix Lose Loyal Subscribers By Burdening Them?

Netflix has finally managed to stop its subscribers from leaving the platform in large numbers. The streaming service faced two very concerning quarters this year. It lost 200,000 subscribers in the first quarter and almost one million in the second. However, the company seems to have reversed the trend, and now claims it may attract 4.5 million new subscribers for the current quarter.

 

This is indeed positive news for the company. As Netflix calls them subscribers, it implies they are paying members and not non-paying profiles with a shared password. However, these subscribers might not be able to share passwords without attracting an additional fee.

Incidentally, Netflix has announced "Profile Transfer", which allows non-paying members to migrate their profile information and customization to a new account. Hence, paying subscribers can now ask such profiles to "move out", without forcing them to start from scratch. New subscribers can also opt for the cheaper, ad-supported subscription tier.

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