A new era is dawning on Netflix as it will now center on cracking down on password-sharing in the country, with the test period in Latin America already giving the streaming giant an idea of how much to charge subscribers. Moreover, the company is already looking for a fully-digital experience as its DVD rental services are shutting down this year.
The Password-sharing crackdown will begin this Summer season, and users will have the option to pay extra for sharing one account or still pay extra to create their account to subscribe.
Netflix Password-Sharing Fees Coming this Summer in the US
In a letter to shareholders from Netflix, the company has announced that its password-sharing crackdown will begin in the United States by the end of June, officially starting its new policies this summer. With that in mind, the letter did not discuss the fees that it would charge by the start of Summer, and how much each person would cost outside the home.
After its lengthy testing in Latin America for the different-priced tiers of Netflix's password-sharing, the company has settled into one and has already rolled out to some countries including Canada and New Zealand.
The next step is to bring this to the United States and implement the changes, with Standard and Premium accounts eligible to do this, and only two additional members are allowed.
Netflix DVD Rental Service is Shutting Down
On the other hand, Netflix also announced earlier today that it is already looking to "wind down" on its DVD rental service via DVD.com, with its move to go all-digital from here on out. The company said that it will mail its last disc rentals by September 29, after 25 years since it first started.
The reason for this move is because of the business "shrinking" in today's era, which all centers on an internet-based platform. Moreover, most laptops already removed their CD reader slot, making it difficult to access shows via DVD rentals.
Netflix and its Streaming Platform
In the streaming wars of the present, Netflix is looking to grow more of its revenue from subscriptions by cracking down on password sharing, and this means that only users get to have one account if they live in different households. It was also said in the past that it will end up costing more for users who share their passwords with other people using different networks than creating a new account.
After the company's wide testing in Latin America last year, Netflix already started rolling out these new fees for countries including Canada, New Zealand, Portugal, and Spain. This move took place in February this year, and this meant that it is inching closer to the United States for this implementation of the new rules, with already an initial taste of what it would be like.
Netflix is no longer tolerating password-sharing in the country for those who do not use a single network, which its system would detect, with one required procedure by logging in every month to ensure that it is used in one place.
Apart from that, the company is already looking into a more digital experience by shutting down its DVD rental completely, parting ways with the old practices.
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