In a shareholder’s letter, Netflix announced its plan to monetize the widespread pattern of revenue loss due to the use of non-purchased secondary accounts. 

   Since customers expressed concern about the loss of their profile history as a result of such a change, Netflix assured users that they could transfer their information from shared accounts to new ones with ease. If users wish to remain under their shared accounts, a supplemental payment for sub-accounts will be offered.

   According to Time, earlier this year, Netflix tested out subscription additions of $2.99 in countries like Costa Rica, Chile, and Peru, which allowed for up to two outside-household members to join an account.

   “We’re trying to come up with a range of options that supports customer choice,” Netflix chief product officer Greg Peters said.

   Netflix projected this new program to progress more extensively in these Latin American countries by early 2023, which will provide direction for its development in other countries, namely the United States.

   The fee system will be implemented with a test that identifies consistent account use outside of the primary account household for longer than two weeks. Once shared use is identified, users will then have the option to pay for additional sub-accounts.

   According to CNBC, with a report of over 100 million households under secondary accounts, Netflix experienced its first significant loss in subscriptions in over 10 years during the first quarter of this year: a jump from 1.3 million in the U.S. and Canada to only one million worldwide.

   Such an income deficit defines the program as imminent and requisite, however unpredictable in terms of what it will look like in different households across the globe.