Netflix will launch ‘Paid Sharing’ for user accounts in 2023, which the company says will help monetize password sharing that’s rampant right now and also add to its revenue growth.
According to the Netflix Q3 earnings call from Tuesday afternoon, the company says ‘Paid Sharing’ will help monetize “all that unpaid viewing” that’s happening on the service, according to Spence Neumann, Chief Financial Officer.
Netflix discussed more about the premise of ‘Paid Sharing’ when the topic was brought up by Doug Anmuth, an analyst at JPMorgan Chase and Company.
According to Greg Peters, Chief Operating Officer and Chief Product Officer, he said ‘Paid Sharing’ will expand on the recent launch of the feature to transfer profiles from one account to another.
As for ‘Paid Sharing,’ Peters explained, “Another component of this, though, is allowing account owners to be able to pay for Netflix for some friends or family, something they want to share the service with. And so they’re 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’ve got a sustainable business model that allows us to invest in more of that great entertainment that Ted’s team has always focused on for all of our members. So, we’re looking forward to getting that out in early ’23”, said Peters.
It sounds like ‘Paid Sharing’ will cost a fraction of a full-fledged Netflix subscription, allowing the company to monetize extra users on an account. Add a friend to your account for a couple of bucks per month and they get full access, allowing Netflix to earn revenue on what otherwise would have been zero revenue, it seems?
In Q3, the streaming service bounced back and added 2.41 million subscribers and net revenue of $7.93 billion USD. The company says it is also considering Netflix cloud gaming and will open up a new studio in California.
