Netflix Will Prompt Subscribers to Pay for Users Outside Their Households in New Password Crackdown

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Netflix Will Prompt Subscribers to Pay for Users Outside Their Households in New Password-Sharing Crackdown Test





Netflix will soon launch a test letting primary account holders pay an additional fee for users outside their households — a new attempt by the company to crack down on illicit password-sharing.

According to the Netflix terms of service, a customer’s account “may not be shared with individuals beyond your household.” Last year, the company ran a limited test prompting users to enter their account credentials, as a way to nudge freeloaders into paying for their own accounts.

Now, in an upcoming test launching in three countries — Chile, Costa Rica and Peru — Netflix will let members who share their accounts with people outside their household to do so “easily and securely, while also paying a bit more,” according to Chengyi Long, director of product innovation at Netflix. The new options will roll out in the next few weeks in the three countries (and may or may not expand beyond those markets).

“We’ve always made it easy for people who live together to share their Netflix account, with features like separate profiles and multiple streams in our Standard and Premium plans,” Long wrote in a blog post about the test. “While these have been hugely popular, they have also created some confusion about when and how Netflix can be shared. As a result, accounts are being shared between households — impacting our ability to invest in great new TV and films for our members.”

With the “add an extra member” feature, members with Netflix’s Standard and Premium plans will be able to add subsidiary accounts for up to two people they don’t live with, each with their own profile, personalized recommendations, login and password — for less than the cost of a separate Netflix plan.

In the test, the cost for adding a sub-member is 2380 CLP in Chile, $2.99 USD in Costa Rica, and 7.9 PEN in Peru. Here’s a breakdown of the pricing of Netflix’s plans in each country:

Country Basic Standard Premium Extra Member
Peru 24.9 PEN 34.9 PEN 44.9 PEN 7.9 PEN
Costa Rica $8.99 USD $12.99 USD $15.99 USD $2.99 USD
Chile 5940 CLP 8320 CLP 10700 CLP 2380 CLP

As with other tests the streamer has conducted, there’s no guarantee that the option to pay for non-household members will end up permanently part of the service. “We’ll be working to understand the utility of these two features for members in these three countries before making changes anywhere else in the world,” Long wrote in the post.

In addition, Netflix is testing out the ability to let subscribers transfer user profiles to new accounts, which would make it easier for password moochers to pay for their own plans. Members in the three test countries can allow people who share their account to transfer profile information either to a new account or an Extra Member sub account – keeping the viewing history, My List, and personalized recommendations.

In the three test markets, Netflix over the next few weeks will notify members who share their account outside their household about the new options. A member may be prompted to verify their account only if a device outside of their household logs in to the account; Netflix may then ask the user to verify the login from the device by sending a verification code.

Netflix ended 2021 with 221.8 million total paying subscribers worldwide. Of those, 75.2 million (34% of the total) were in the U.S. and Canada.



Netflix Test Will Let Members Pay for Password-Sharing Users - Variety
 

Rayzah

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How can you be mad at that? People are reckless with their password sharing, they feel like they need ask the viewers they can get so cleaning up this makes sense. It’s probably like 2-3 “guests” for every paid account and atleast one of them lives across the world
 

Zime

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WeWillAllChangeOurStances

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This is what happens when you are not the only business in the space anymore. Competition has made them do this, because they are losing a lot of market share, and revenue. So now they are just fighting to survive.

:usure:

Check their financials, they'll be fine.
Their stock went down but still at pre-pandemic levels
 

producingfire

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they'll still be ok
The people at the top will, but the employees that work for the company won't. This reminds me of blockbuster they had all this money coming in and they had an opportunity to buy Netflix, and the powers that be said, "We are Blockbuster we are set, and besides no one streams" and now... well you know the story.
 

FaTaL

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The people at the top will, but the employees that work for the company won't. This reminds me of blockbuster they had all this money coming in and they had an opportunity to buy Netflix, and the powers that be said, "We are Blockbuster we are set, and besides no one streams" and now... well you know the story.

well redbox put them away
 
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