Netflix revealed a few weeks ago that it is cracking down on the prevalent practice of password sharing between people who do not reside in the same home by requiring them to pay an additional charge for the privilege.
“While these [household plans] have been tremendously popular, they have also generated some uncertainty regarding when and how Netflix may be shared,” Changi Long, head of product innovation, writes in a blog post. As a result, household accounts are being shared, limiting our capacity to invest in fantastic new TV and films for our customers.”
Netflix will test its approach in three countries: Chile, Costa Rica, and Peru, for a limited time. Subscribers will be prompted to add an extra viewer to their subscription at a discounted price of 2,380 CLP in Chile, 2.99 USD in Costa Rica, and 7.9 PEN in Peru, in addition to the possibility to transfer watching profiles into new accounts (either your own primary account or someone else’s).
This isn’t the first time Netflix has tried to stop people from revealing their passwords. Last year, the business tested an account verification tool to prevent unauthorised users from using other people’s accounts.
The addition of “add an extra member” and “transfer profile” capabilities, on the other hand, suggests that Netflix is thinking carefully about how it may continue to expand when its membership numbers stagnate. If Netflix wants to maintain its crown as streaming king, it must continue to bankroll more expensive originals. Long basically stated as much in Netflix’s statement today: “That money has to come from someplace.”