Netflix shares plummeted over 30%>Say goodbye to sharing your password
Though Netflix has tolerated its users sharing access to accounts — even going so far this week as to say that it "helped fuel our growth by getting more people using and enjoying Netflix" — it appears to be gearing up to make it a thing of the past.
The company has already been testing ways to charge password sharers extra fees. Users in Chile, Costa Rica and Peru have been paying an extra $3 per month to add extra profiles to their accounts.
Netflix's chief operating officer Greg Peters said>And say hello to commercials
Just three months after raising prices for its basic, standard and premium plans, Netflix is leaving the door open for a cheaper, ad-supported tier.
CEO Reed Hastings said on the earnings call that the company is considering adding a cheaper tier if it means keeping more users on its platform. He cited successful ad-supported tiers from Hulu and Disney+ as the impetus for Netflix to embrace commercials.
"Those who have followed Netflix know that I have been against the complexity of advertising and a big fan of the simplicity of subscription," Hastings said. "But as much as I am a fan of that, I am a bigger fan of consumer choice, and allowing consumers who would like to have a lower price and are advertising-tolerant to get what they want makes a lot of sense."
The plans aren't imminent, however. Hastings said it may take as much as two years to roll out the cheaper membership tier.
