Today during its Upfront event to promote its upcoming programming and advertising opportunities, Netflix announced its ad-supported plan now has almost 5 million monthly subscribers.
Netflix launched its cheap ad-supported plan back in November of 2022. This $7 a month plan allows subscribers access to almost everything on Netflix but with ads.
Netflix is likely hoping its crackdown on password sharing will help drive up subscribers to its cheaper plans or even its standard plans.
Back in April Netflix announced it would start cracking down on password sharing in the United States. Netflix says users will start to see limitations on how they can watch outside the home starting before the end of June.
“In Q1, we launched paid sharing in four countries and are pleased with the results,” Netflix said in its Q1 letter to shareholders. “We are planning on a broad rollout, including in the U.S., in Q2.”
After testing out its password sharing crackdown in several markets, including Canada, Netflix says they saw subscriber numbers go up after the crackdown. At first numbers went down but Netflix reportedly saw subscribers pay for the ability to let others use their account driving revenue up.
“A Netflix account is meant to be shared in one household (people who live in the same location with the account owner),” Netflix says on the customer-help section. “People who are not in your household will need to sign up for their own account to watch Netflix.”
Here is what Netflix wants you to know about the new password-sharing rules in other countries:
- Set primary location: We’ll help members set this up, ensuring that anyone who lives in their household can use their Netflix account.
- Manage account access and devices: Members can now easily manage who has access to their account from our new Manage Access and Devices page.
- Transfer profile: People using an account can now easily transfer a profile to a new account, which they pay for — keeping their personalized recommendations, viewing history, My List, saved games and more.
- Watch while you travel: Members can still easily watch Netflix on their personal devices or log into a new TV, like at a hotel or holiday rental.
- Buy an extra member: Members on our Standard or Premium plan in many countries (including Canada, New Zealand, Portugal and Spain) can add an extra member sub account for up to two people they don’t live with — each with a profile, personalized recommendations, login and password — for an extra CAD$7.99 a month per person in Canada, NZD$7.99 in New Zealand, Euro 3.99 in Portugal, and Euro 5.99 in Spain.
Look for the rules to be similar in the United States.