Sharing your Netflix account with people outside the home will soon cost money.
Netflix on Tuesday went public with its plan to charge U.S. subscribers $7.99 per month for sharing the account with one person outside the home.
That means that if a family or friend who stays away from the household wants to indulge in the final episodes of Manifest, the fee will be triggered.
Wow, right?
It gets worse…
Netflix has confirmed that you can add just one extra member on the standard plan, meaning if you share your account with more than one person outside the house, it might make more financial sense for them to have their own account.
Subscribers on the premium plan can add two extra members, which would clock in at $15.98 in addition to your subscriber fee.
The streaming service said users could not be added to ad-supported plans, partner packages, or third-party billed accounts.
Netflix remains the biggest streaming service, but the number of subscribers has slowed in recent years.
There was no ceiling at one point, with the service aggressively adding new users every quarter.
But the market has changed. There is more competition nowadays, which is making it difficult to showcase growth.
As a result, Netflix believes it is losing a lot of money thanks to people sharing their accounts with other households.
It will take some time to know whether the move will help or hinder the streaming service, but it is the first of its kind.
Competing services like Max, Peacock, and Paramount+ have yet to add any charge for using someone else’s account.
That could change in the future if Netflix finds success with this move.
Another hurdle that could harm Netflix is that this measure has been implemented during the Writers Strike, which comes at a time when the streaming service will be looking to slow the rollout of some series if the strike is not resolved soon.
What are your thoughts on this news?
Paul Dailly is the Associate Editor for TV Fanatic. Follow him on Twitter.