Netflix to start testing charging fee to share accounts
17 Mar 2022 12:26:43
New Delhi, March 17: Netflix has said it will soon launch a test letting primary account holders pay an additional fee for users outside their households. It is basically an attempt by the company to address illicit password-sharing.
During a test period, Netflix will try out its approach in 3 countries: Chile, Costa Rica, and Peru, and would cost approximately USD 2-USD 3 extra per month if the users in those countries choose to opt-in.
Netflix's blog post said that the first feature would allow Netflix subscribers on standard and premium plans to add sub-accounts for people they don't live with. Each sub-account would include a separate login, profile, and personal recommendations.
To enable the new sub-accounts, the main account owner will receive an email with a code that they'll need to use to verify the additional devices are a part of their household.
The US-based steaming service has long taken a relaxed approach to users sharing passwords with family or friends, but recently saw stock dive on quarterly results that showed cooling subscriber growth.
Competition in the streaming television market has been ramping up, with the cost of producing coveted original shows climbing as well.
During a test period, Netflix will try out its approach in 3 countries: Chile, Costa Rica, and Peru, and would cost approximately USD 2-USD 3 extra per month if the users in those countries choose to opt-in.
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"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. 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," Chengyi Long, director of product innovation at Netflix, wrote in the blog post.
Netflix's blog post said that the first feature would allow Netflix subscribers on standard and premium plans to add sub-accounts for people they don't live with. Each sub-account would include a separate login, profile, and personal recommendations.
To enable the new sub-accounts, the main account owner will receive an email with a code that they'll need to use to verify the additional devices are a part of their household.