The term describes a pricing strategy implemented by a specific streaming service, targeting households that share accounts with individuals outside of their primary residence. This approach introduces an extra fee for subscribers who wish to extend access to users not living within the same household, effectively monetizing account sharing. As an example, if a subscriber in Location A allows a user in Location B to access their streaming account, the subscriber may incur an additional charge.
The importance of this measure lies in its potential to increase revenue for the streaming platform. By limiting unauthorized account sharing, the platform aims to convert casual users into paying subscribers. The historical context is rooted in the increasing competition within the streaming market and the need for platforms to maximize their subscriber base and revenue streams. This strategy is also a response to the widespread practice of account sharing, which negatively impacts the profitability of these services.
