Netflix will monetize 14 million non-paying account users in 2023, a tally that should increase to 26 million by the end of 2024 and 33 million by the end of 2025, according to analysis from JP Morgan analyst Doug Anmuth.
Since launching the option this year that allows subscribers to share their Netflix accounts with non-paying members, the SVOD pioneer is attempting to curb a practice that impacts about 100 million of its global subscriber base.
Netflix subs can now add non-members for an additional $7.99 monthly fee, a move some observers believed would increase subscriber churn, or increase members who don’t renew their monthly subscription plan.
Instead, Netflix is eyeing tens of millions of dollars in new revenue, according to Anmuth.
Anmuth believes the new monetization will include a 50-50 split between new subscribers paying the additional fee and non-subs paying for access to a subscriber’s password. The latter user group does not count as an actual paid Netflix subscriber.
“We believe that is playing out as Netflix has improved communications with account holders and password borrowers (as well as non-sharing members) and eased concerns related to access while traveling,” Anmuth wrote in a note.
The analyst was also upbeat on Netflix’s foray into an ad-supported subscription tier, which the streamer said had generated around 5 million active global users in the first quarter ended March 31.
Anmuth believes about 54% of new subscribers will opt for the $6.99 ad-supported tier this year and in 2024.