Netflix have announced plans to charge user fees to its customers as they attempt to crack down on password-sharing.
In an earnings call, Netflix said: “After listening to consumer feedback, 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.”
They added: “In countries with our lower-priced ad-supported plan, we expect the profile transfer option for borrowers to be especially popular.”
The streaming service are yet to reveal how much the extra cost will be to subscribers. However, they have been trialling this exercise in Latin America, and prices are expected to raise by around 25 per cent.
Netflix are desperate to increase revenue after losing over a million subscribers throughout the early stages this year. Although, they have recently turned things around and produced a net gain of 2.41 million subscribers in the third quarter.
Meanwhile, it was recently announced plans for a new tier, ‘Basic With Ads’, which will cost £4.99 a month in the UK and will launch on November 3rd. Users will still be able to watch content on TV and mobile devices, although the video quality will be limited to 720p/HD for both the Basic with Adverts and Basic plans. Netflix say there will be four to five minutes of adverts per hour.