Netflix is expanding its push to charge people for sharing accounts as it looks for new ways to make money after years of massive growth.
The streaming service said it would ask subscribers in five countries in Central and South America to pay an additional $2.99 a month to add a “home away from home” to their accounts.
And it warned that the crackdown on password sharing will spread worldwide.
The latest announcement came ahead of the results, which are due on Tuesday.
Earlier this year, the company announced its first drop in subscribers in more than a decade. The company will provide an update on its members along with its findings, expecting the drop in subscribers to increase.
It’s a stark reversal for a company that has enjoyed years of seemingly unstoppable growth as it revolutionized the way people around the world consume entertainment and shook up the traditional television and cinema businesses.
Its position as a global giant was cemented when the pandemic hit in 2020 and people, stuck at home with few other entertainment options, flocked to its shows.
But as pre-pandemic habits return, Netflix is struggling to attract new signups — and maintain the loyalty of existing members.
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Price hikes have prompted people in countries like the UK to cancel subscriptions, while a slew of new competitors like Disney, many of whom used to sell their films and TV series to Netflix, are enticing audiences in the US and elsewhere to switch.
Research suggests that people are increasingly signing up to watch certain shows and then terminating accounts.
It’s not clear how families will respond to the company’s request for more money for joint accounts.
In March, Netflix said it would charge households in certain countries, like Chile, to add an “extra member.”
The latest move, effective next month in Argentina, Honduras, Guatemala, El Salvador and the Dominican Republic, presents the application in slightly different terms, requiring $2.99 for each additional home.
People can edit their accounts to remove homes at any time, it said.
Netflix has said it’s experimenting with different ways of displaying fees before rolling them out globally later this year.
In addition to attempting to monetize existing audiences with crackdown on password sharing, the company has announced it is experimenting with a lower-cost ad-based service.
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