• Paid sharing forms part of Netflix’s strategy moving forward.
• This feature will allow folks to pay to give others access to Netflix.
• Alternatively, Netflix’s Basic with Adverts provides a more affordable avenue for users who may have previously shared an account.

Account sharing is a major problem for Netflix and in its Q3 earnings call it revealed that it has a solution for that problem.

The exact details of the solution aren’t clear but starting in 2023, something called paid sharing is coming to Netflix according to a letter to shareholders (PDF). Chief operating and product officer at Netflix Greg Peters elaborated on this during an earnings interview.

“We’ve tried a couple different approaches in different countries and based on the customer feedback that we’re getting we landed on an approach to paid sharing that we think strikes that balance,” said Peters.

The balance he’s referring to is the balance of being customer centric while still getting paid for the service you provide.

As for what paid sharing could look like we have some idea as the tests Peters refers to were widely publicised.

In one test, Netflix asked users to pay to add a household which came with some serious restrictions we would describe as “customer centric”. For example, somebody who travels regularly would be penalised for streaming outside of their “home” even if they were the primary account holder.

The other test that took place saw Netflix asking account holders to pay an additional fee to create a sub-account that two other people who live elsewhere could use.

So which of these will Netflix be going with? According to that same interview with Peters, it sounds very much like option where you’ll have to pay for sub-accounts.

However, Peters pushed the idea that what Netflix really wants is for people to create their own account. This can be seen in the recently announced Profile Transfer feature. This allows a freeloader somebody you’re sharing an account with, to transfer their viewing history, recommendations and other information to a new account.

“Another component of this though is allowing account owners to be able to pay for Netflix for a friend of family member or somebody they want to share the service with. So they are able to create a sub account which we’re calling Extra Member to enable that model too. So we’re trying to come up with a range of options that supports customer choice, balances those considerations, but also ensures that we have a sustainable business model that allows us to invest in more of that great entertainment,” said Peters.

Importantly, Netflix hasn’t mentioned any sort of pricing adjustment alongside these Extra Member fees so we foresee a few tough conversations with friends and family happening over the forthcoming holiday period.

There’s no word as yet on whether Basic with Adverts will be made available in more countries nor how much Extra Members would cost should it be implemented.

The message from the firm is very clear though, if you’re watching Netflix, you should be paying for Netflix.

[Image – Netflix]