Netflix introduced a new type of additional member account: additional members with ads.
The streamer announced the new offer in a letter from a shareholder on Tuesday before its fourth-quarter earnings call. In the United States, according to Netflix Help Siteadding an additional member with ads costs $7 per month, and the option is available alongside existing additional member accounts that do not have ads.
According to Netflix's site, these additional member accounts do work much like the previous version as a way to pay more for an additional person placed in a different household. You'll need an ad-free Netflix type — Standard or Premium — to buy an additional member slot. Netflix Premium subscribers can add up to two slots, and standard customers get one. Additional members have a separate account and password.
Netflix also announced a price increase on Tuesday. Now, the ad-based version for additional members it costs $1 less per month than the standard plan with ads and $2 less than an additional membership account without ads.
Apart from the price, the difference between being a Premium Member with Ads and a Standard Subscriber with Ads is that Premium Members can only view and download on one device at a time. Standard members with ads get two simultaneous screens and download devices. Additional members get one profile and Standard with Ads customers get up to five.
In the letter to shareholders, Netflix said it aims to give members “additional choice and flexibility” with the additional member offering. Ad-supported signups accounted for over 55% of signups in Netflix's ad-supported countries in the fourth quarter, according to the letter, and ad-based memberships grew nearly 30% quarter over quarter.