Netflix to crack down on password sharing in 2023 with 'sub-accounts'

• Netflix has detailed its Q3 2022 earnings.
• The popular streaming platform has gained 2.4 million subscribers, achieving a higher mark than its forecasted one million.
• In 2023, Netflix will roll out account transferring and a way to monetize "password sharing" by introducing "sub-accounts."

The streaming service announced its Q3 earnings this week, which showed that it beat its original projections.

Thanks to a 5% increase in average paid memberships, the platform has seen a revenue increase. Previously, it was thought that it would only gain 1 million. The increase in subscribers for Q3 2022, along with the same amount of revenue for the second quarter of the year, is what led to the increase in subscribers.

The platform lost 1 million subscribers in the second quarter. The company at least saw some revenue growth as a result of the streaming service increasing its membership prices.

A new approach to account sharing is about to be introduced byNetflix. New "sub-accounts" will be added in early 2023 in which the account holder pays for extra members that aren't part of the account owner's household. Password sharing has been popular on the service, and this is a way for the company to make money from it.

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It will be possible for borrowers of an account to transfer their profiles to their own account once they sign up for the service. It will be easier for account holders to get rid of extra members from their accounts if this feature is used. When you separate, transferring your account will not change anything.

The recently revealed plan is called "Basic with ads." The new plan will be available in the US on November 3 for $6.99.

The company wants to get nearly 40 million new subscribers by the end of the decade.

The company expects to make around $7 billion in revenue in the fourth quarter of 2022. The streaming service attributes the slight decline to the strength of the US dollar.