Netflix Inc (NASDAQ:NFLX) is to make it easier to remove freeloaders from a streaming account while still letting them hang onto their viewing preferences.
The 'Profile Transfer' feature has been launched globally after Netflix initially tested it in Chile, Costa Rica and Peru. Profile transfers will be enabled automatically in all countries except South Korea and the US where activation will need to be done through settings menus.
Engadget said Netflix has confirmed to it that users will not be able to transfer a profile to an existing account, with the process only working when transferring a profile to a new account.
READ: Netflix at a critical juncture in lead up to Tuesday’s earnings
Netflix said the feature has been "much requested" and the company framed it as a helpful option for those leaving a relationship or moving away from their parents' account to start a new profile of their own.
However, Netflix is also looking to crack down on password sharing. In August, it started charging users in five Latin American countries more if they share their accounts on an ongoing basis with people who live outside of the primary residence. That came after a trial run in Chile, Costa Rica and Peru, which suggests that account-sharing fees may be coming to more territories after the broader rollout of profile transfers.
Netflix is clamping down on account sharing particularly in light of the fact that its total number of subscribers dropped for the first time this year, with the company losing around 1.2 million subscribers in the first six months of 2022.
Users that find themselves having to pay for their own Netflix account, though, will soon have the option to transfer their profile to a cheaper, ad-supported plan which will be available from November.
Netflix is at a critical juncture in the leadup to its third-quarter earnings call on Tuesday, October 18. With an ever-expanding set of competitors, ropey subscription numbers and little on the way of AAA programmes since Stranger Things’ season four finale, the streaming giant is in need of some good news.
Contact the author at jon.hopkins@proactiveinvestors.com