Toni Dimaano Tech 10.18.2022 22:Oct PM EDT

Netflix Will Charge Monthly Fees to Those Who Share Their Login Credentials Beginning Early 2023

Following the company's first subscriber loss in a decade, Netflix is charging subscribers more for sharing login credentials by early next year.

Starting 2023, the global streaming platform will be cracking down on password-sharing by adding to their monthly fees, Engadget reports.

The Move Is Expanding From Latin America

Netflix is doubling up on its efforts to get freeloaders to contribute to subscription fees by asking subaccounts to pay up as well.

During its quarterly earnings call on Tuesday, the company announced that the pilot program running in Latin America would be expanding to the rest of the world next year.

According to CNet, the password-sharing fee system that will be rolled out is already in place in Costa Rica, Chile, and Peru for six months already.

This program charges subscribers with extra member accounts with more fees when someone outside the user's home uses their login to access the platform's services.

Netflix says that every extra account listed on the "Who's Watching?" screen will cost the customer an additional fee once the change is implemented.

According to Engadget, the punitive fee for sharing user credentials has not yet been determined by Netflix, but it will allegedly follow the pilot's one-quarter of the basic rate scheme.

Earlier this year, Netflix reported that the company's subscriber count dipped by 1.3 million in North America while only growing by 104,00 in the last quarter.

Though the company has long been aware of the password-sharing problem across the world, this is the first time that Netflix is doing something about it due to a massive decline.

Netflix Is Doing This In Light Of Competition

With the announcement of the password-sharing crackdown, the company also announced that subscribers can now transfer profiles to new accounts starting next week.

Netflix unveiled an account migration tool that transfers subaccount data to new, independent subscriptions on Monday, which lets users retain their viewing history and recommendations.

USA Today writes that this feature offers borrowers the ability to transfer accounts more easily into their own profiles while sharers can manage their devices with ease.

Netflix said that it launched this feature in July, which was a key component to prompting the testing of the new password-sharing system.

Additionally, a less expensive, ad-supported tier that costs $7 a month will also be launched on November 3 in Canada and on November 10 in Mexico.

This is in partnership with Microsoft to serve users with ads that last from 15 to 30 seconds but will restrict users from accessing Netflix's whole library due to licensing, The Verge says.

CNet writes that this move continuously alienates customers, which makes competitors like Disney Plus, HBO Max, Amazon Prime, and Hulu stronger in the market.

However, The Verge reports that Netflix remains confident in its business model, despite the difficulties of building a steady streaming business.