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Jordan Tucker
Last October, Netflix hiked prices for the second time in less than two years. The current monthly pricing for the Netflix Standard plan with ads is $6.99. Without ads, the Standard plan will run you $15.49 a month and the Premium plan will cost $22.99.
The company is cracking down on customers who share their accounts with people outside a single geographic household, introducing an $8 monthly charge in a long-threatened bid to retain customers and stanch a slowdown in subscription growth. Netflix uses location tracking to ensure subscribed users are logged in at a single home subscriber base, which is sure to test users already sensitive to growing threats to their online privacy.
Since the end of June, Netflix has blocked devices that attempt to access a Netflix account without paying the proper fees, according to TechRadar. Subscribers in a compliant household can keep using the service on the road, like on laptops or hotel TVs, without paying additional fees.
The Financial Times previously reported that Netflix had alerted internet provider partners in the UK that they should expect angry calls and support questions about the sharing price hike and location tracking features.
This move suggested that despite Netflix's best efforts, the company predicted a large number of subscribers would only detect the change when Netflix demanded an extra $8 for sharing the account outside their new "home" location.
Ben Demers manages digital content and engagement at Kiplinger, informing readers through a range of personal finance articles, e-newsletters, social media, syndicated content, and videos. He is passionate about helping people lead their best lives through sound financial behavior, particularly saving money at home and avoiding scams and identity theft. Ben graduated with an M.P.S. from Georgetown University and a B.A. from Vassar College. He joined Kiplinger in May 2017.","contributorText":"With contributions from","contributors":["name":"Esther D\u2019Amico","role":"Senior News Editor","link":"href":"https:\/\/www.kiplinger.com\/author\/esther-d-amico"]}), " -0-11/js/authorBio.js"); } else console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); Ben DemersSocial Links NavigationAudience Engagement Manager, Kiplinger.comBen Demers manages digital content and engagement at Kiplinger, informing readers through a range of personal finance articles, e-newsletters, social media, syndicated content, and videos. He is passionate about helping people lead their best lives through sound financial behavior, particularly saving money at home and avoiding scams and identity theft. Ben graduated with an M.P.S. from Georgetown University and a B.A. from Vassar College. He joined Kiplinger in May 2017.
The streaming company is limiting password sharing to people living in the same household. Account holders can add more people outside of the household for an extra $7.99 a month, or they can use the "transfer profile" feature to prompt extra users to make their own accounts that they pay for, Netflix said Tuesday.
In March of 2022, the company said that while it had encouraged account sharing in the past, with features such as profiles and multiple streams, the practices have been "impacting our ability to invest in great new TV and films for our members."
Netflix previously tested out paid password sharing in international markets such as Chile, Costa Rica and Peru in 2022. Earlier this year, the company expanded its paid account sharing into Canada, New Zealand, Portugal, Chile and Spain. The company said it had positive results in a letter to shareholders at the end of the first quarter of this year.
"As with Latin America, we see a cancel reaction in each market when we announce the news, which impacts near term member growth," it said. But as borrowers start to activate their own accounts and existing members add 'extra member' accounts, we see increased acquisition and revenue."
On Thursday, as news of the changes began to spread, Google searches for "Netflix cost per month" and "How much is Netflix per month" soared. Many people are also asking the search engine: "Is Netflix charging for sharing?"
A shareholder's letter released on October 18 said the company had "landed on a thoughtful approach to monetize account sharing and we'll begin rolling this
out more broadly starting in early 2023."
The shareholder's letter added: "We are going to offer the ability for borrowers to transfer their Netflix profile into their own account, and for sharers to manage their devices more easily and to create sub-accounts ('extra member'), if they want to pay for family or friends."
The idea was branded "bulls****" by one Twitter user, who wrote: "My parents have had a Netflix subscription for them, me and my siblings. It's a family account. We don't all live together anymore. How are you gonna tell us we can't watch Netflix on our own account?"
Under the new approach, the siblings in this family would be expected to transfer their profiles to new accounts, each paying their own fee, or become "extra members" on their parents' plan, which costs extra too.
Alice Gibbs is a Newsweek Senior Internet Trends & Culture Reporter based in the U.K. For the last two years she has specialized in viral trends and internet news, with a particular focus on animals, human interest stories, health, and lifestyle.
The account owner will need to purchase an extra member slot, then invite an extra member to use the extra member slot. The extra member must be activated in the same country where the account owner created their account. Extra members cannot be added to Netflix-included packages or third-party billed accounts.
T-Mobile is not making any changes to our Netflix benefit and are still making sure that you are able to get Netflix for your household with the On Us feature. If you are using your Netflix account in other households, then you would need to look at the extra members options through Netflix, but that would not be included in what is covered by the Netflix on Us feature on your T-Mobile account.
We paid for all these lines with this benefit as part of it and expect all of these lines to be able to use this benefit. This is the way it was pitched to us to get us onto this t-mobile plan from our previous tmobile plan.
Family: A family is a group of two or more persons related by birth, marriage, or adoption who live together; all such related persons are considered as members of one family. For instance, if an older married couple, their daughter and her husband and two children, and the older couple's nephew all lived in the same house or apartment; they would all be considered members of a single family.
T-Mobile would not pay for the extra memberships. If you upgrade your plan to Standard or Premium they charge you the extra cost. Why not be able to add a member to your plan (like you could if you had a regular Netflix account) and T-Mobile charge that extra cost also.
If you view your account details in Netflix, there is no Add Extra Members option. That option is only available for standard Netflix accounts, not third-party billed Netflix accounts like T-Mobile. This is a Netflix policy and there is nothing T-Mobile can do about it.
When you sign up for a Netflix on Us promotion, T-Mobile is not creating your Netflix account. You are redirected to the Netflix site to create an account that is billed to T-Mobile instead of yourself.
At least, this Netflix change does not affect existing customers. I have only a single line that qualified for the Netflix Basic plan, but I opted to pay the difference to upgrade to the Premium plan. So, T-Mobile pays the $9.99 for Basic, and I pay the $10 difference for Premium.
I suspect that the Netflix on Us promotion will be modified to offer the $6.99 plan with Ads. And an upgrade to Premium will cost $13 instead of $10. Anyone who has not yet subscribed to the Netflix promotion should do it now before these possible changes are implemented.
Netflix is losing money because of their lack of quality content. How bout not gouging your customers? And give us something that might be worth the addl cost? Imo they need to be a little more careful, recently membership costs went ulp, now this. A customer exodus might happen. Meaning in users language choice, not dubbed. What have they released lately that is water cooler topic? How about staying relevant before charging more and more for tired shows. Other networks continue to offer great new content, for example Paramount & apple. Lol even Hulu
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