Recently, Netflix revealed that it was testing the password sharing feature for an additional fee. This test was carried out in several countries such as Chile, Costa Rica and Peru.
This means that users who subscribe to a Netflix package and then share it with others but are not at home will be charged an additional fee. As is known, Netflix allows sharing passwords for those who do live in the same house.
Later users can add up to two additional accounts, each of which will cost around USD 2-3 per month from standard or premium plans.
If this feature is officially released and implemented, many expect Netflix to make huge profits for the company.
Launching from Ubergizmo, according to US analysts Cowen & Co, they estimate that if Netflix implements this paid password sharing plan worldwide, Netflix has the potential to generate USD 1.6 billion .
"We think Netflix's recent efforts reflect a natural progression in more mature markets and could mine revenue if trials of this feature roll out globally," said Jonh Blackledge, analyst at Cowen and Co, quoting Variety.
According to Cowen's monthly survey of 2,500 subscribers in the US, about 10% of the country's 116 million broadband households are people who watch Netflix but are not paying subscribers.
Other analysts disagree with Netflix's forecast for huge profits. Some argue that if the new feature is actually implemented, it will have a negative impact on customer growth or cannibalize its growth.