Netflix To Increase Prices For Account Sharing

You are an inhabitant of Mars if you haven’t heard the popular saying Netflix Account and Chill…

Netflix, the wonderful bounty for millennials and Gen-Z, changed the way people watch TV. With the help of this popular app, people can now stream their favorite shows whenever they want.

The best part?

Thousands of shows and movies of different genres without any commercial breaks!

So, how did this company come into being? Whose incredible idea was it to launch a remarkable app? Let’s find it out in the infra paragraphs

History of Netflix

The brains behind Netflix are Marc Randolph and Reed Hastings. Before founding Netflix, Hastings and Randolph both worked in Pure Atria. Hastings was the co-founder of Pure Atria, and Randolph worked as a Marketing director.

Pure Atria was sold in 1997 at $700 million. And after that, both the geniuses conceived the idea of Netflix. Hastings’s initial investment in the project was $2.5 million. In the beginning, Netflix sold and rented out DVDs. They had 925 titles and a team of only 30 employees.

Then came an interesting twist…

Jeff Bezos offered to buy Netflix. But, the founders turned down Bezos’s lucrative offer. They continued working on their project. Finally, in 2010, they introduced video streaming and subscription options. After that…BOOM!

Netflix made its way to more than 190 countries. According to Forbes, Netflix topped the list of the largest entertainment companies in 2022.

Apart from that, the big entertainment giant has won many awards and recognition from prestigious platforms. Let’s take a look at a few awards won by Netflix.

Awards Won By Netflix!

Netflix remained one of the most entertaining platforms for more than 2 decades.

Netflix won many awards in its journey. It won its first award in July 2013. The company also won Golden Globe Awards. Netflix was also recognized and praised for its animal documentaries in 2017. It was also honored with an award for the same.

The company won more than 15 nominations for TV and above 20 nominations for films at the 78th Golden Globe Awards.

Netflix has millions of subscribers from each continent. They are happy to pay the monthly subscription fees to stream quality content. But there are plenty of people who aren’t subscribers. Yet, they enjoy the content. They borrow their friends or family members’ IDs to access the app.

Due to the increased account sharing, Netflix has developed a solution. It took some serious measures to stop account sharing. Netflix increased its subscription fee for account sharing.

Netflix to Increase Prices for Account Sharing

Unfortunately, sharing your Netflix accounts with someone outside the household is not possible now. Netflix is testing some new features that will prompt subscribers to pay extra. The feature will allow households to add two “Sub Accounts” for less price rather than the actual fee.

The testing of this feature is underway in Costa Rica and Peru. But the company hasn’t revealed when this feature will be available for Netflix users.

Netflix is not only depending on location-based data like GPS. In fact, it uses the same information it provides to its end-users, including login ids and singing-in information.

Using the feature, Netflix will detect when the accounts are being shared across the household. The main account will receive a code via email to enable the sub-account. The user can verify whether more devices are part of the household or not.

The cost of the extra household is USD 2.99 in Costa Rica and 7.9 Pen in Peru. This is less expensive than a full Netflix account. But at the same time, it is comparatively pricier. Because previously, people didn’t have to pay a dime to share an account with their friends.

Netflix knows that many people enjoy its services by borrowing their friend’s login details. They don’t pay the company any fees.

But now, the generous sharers have to pay the extra price for sharing their accounts outside of their house.

According to CEO Reed Hastings, sharing a Netflix account is good and positive. But, every year, the streaming cost increases. Thus, to keep providing the best services, Netflix will now increase the price for new users.

According to Netflix, they have made it easy for subscribers who live together. They can share their accounts and create separate profiles and many other features. But, sharing outside the house is a big NO from the company. The account holder will bear extra fees for sharing his account outside his home.

At 1$5.50 per month on Netflix, the standard subscription is a little higher than HBO max ($15) and Disney Bundle ($14). If you move to the 4k option, the price goes higher. The price increase is not positive, but it will be safe, especially for Netflix users.

Netflix has two options in such a situation:

• It needs to get more customers.
• Or to charge a little extra from existing customers.

Netflix’s director is confident that the price issue will be resolved. Netflix subscribers are loyal and won’t mind paying a little extra to consume remarkable content.

According to reports, the total spending money that Netflix will need in 2022 will be $230 billion. Hence to create amazing content and shows for people, Netflix needs money. And it believes that a little price increase will help them without burdening the users.

Conclusion

Netflix is investing a million dollars in new projects, TV shows, and movies. Netflix announced back in January the prices would increase in the US.

After the announcement, the prices jumped up to $9.99/month. The standard plan increased by $1.5 and reached $15.49/month. The Platinum package went to $19.99/ month, increasing by $1.99.

According to the company, they increased prices due to the wide quality of the content range.

Many consumers are taking the subscription of other streaming services like Amazon prime. But a lot of new content on Netflix is tremendous. It’s worth it because you get a lot of remarkable content. So, a little hike in price works fine for the majority of the subscribers.

Otherwise, there are many different options available. You can choose any streaming option according to your choice and budget.

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