The toll to scroll: Netflix introduces new fees for ‘extra users’
Netflix's upcharge for account sharing is expected to arrive early next year.
Netflix announced its solidified plans to curb all your sneaky, sneaky password sharing during yesterday’s quarterly earnings call—an “extra user” up-charge is coming for US subscribers in early 2023. Rumors of the fee first began circulating earlier this year, when word got out that the streaming giant was testing the change within its Latin American user base, but Tuesday’s declaration of war on account sharing makes it an all-but-done deal.
[Related: Netflix will launch ‘Basic with Ads’ tier in November.]
As Engadget put it succinctly this morning, “Basically, every listing on the ‘Who’s Watching?’ screen is going to cost you extra money if they don’t also live with you.” As to how much that actually will cost people, the number is currently unclear. That said, if it mirrors the pilot program’s “one quarter of the basic rate,” that will put the penalty fee at between $3 and $4 extra per month.
The latest shakeup comes less than a week after Netflix announced the imminent launch of a $6.99 “Basic with Ads” subscription tier, which is set to roll out in a dozen countries including the US next month. Apart from an estimated 5 minutes of commercials per streaming hour, those opting for the company’s cheapest option will also likely miss out on around 10 percent of the platform’s catalog due to various licensing issues. Both the Basic with Ads tier and “extra user” fees arrive as Netflix has struggled to stem consumer attrition and keep up with competitors like Disney+ and Hulu.
[Related: What to know about the Netflix-BARB partnership.]
Despite reporting sizable subscription losses earlier this year, however, the success of recent shows like Stranger Things‘s Season Four and Monster: The Jeffrey Dahmer Story resulted in a membership reversal, with Netflix adding over 2.4 million additional accounts in Q3 2022.
