Netflix is set to start charging accounts for password sharing.
In a letter to shareholders, Netflix said the company intends to launch “extra member” sub-accounts in 2023, which will require users to pay an additional fee for friends and family members accessing their account.
The move comes as other streaming companies begin identifying ways to prevent and limit password sharing.
Though the company reported on Tuesday it turned a corner and gained more than 2 million new subscribers, it lost subscribers in three consecutive quarters and has struggled against slowing growth.
As it regains momentum, charging for extra members allows the company to start “monetizing all that unpaid viewing,” Netflix CFO Spence Neumann said on a call with investors on Tuesday.
