Netflix earlier increased the prices for its plans in the US, and then in the UK and Ireland earlier this month. Now, the company has announced that it is working on ending password sharing on the platform, a practice that is more common than actually having a Netflix subscription. Netflix announced that it is cracking down on the widespread practice of sharing passwords between people who don’t live in the same household. The company is planning to make those who share passwords pay extra fee for the privilege, the company said in a blog post.
“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," Netflix’s director of product innovation Chengyi Long said in the blog post.
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HOW NETFLIX PASSWORD SHARING FEES WILL WORK
As a test, Netflix has launched a test in three countries – Peru, Costa Rica, and Chile. There, subscribers will get prompts to add an extra viewer to their package at a discounted price of CLP 2,380 (roughly Rs 230), $2.99 in Costa Rica (roughly Rs 230), and PEN 7.9 (roughly Rs 160) in Peru. Subscribers of the Basic, Standard, and Premium plans can enable 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 personalised recommendations. Netflix has not said how long it plans to run this test before a wider rollout.
THIS IS NOT THE FIRST ATTEMPT TO END NETFLIX PASSWORD SHARING
Now, this is not the company’s first attempt to end password sharing with those who are not subscribers themselves. Last year, Netflix experimented with an Account Verification tool to keep unauthorised users from using others’ Netflix account.
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The new fee, however, comes as a more strategically thought plan of action from the streaming giant. With this, the company can keep growing its subscriber count that has continued to plateau in the past few months.
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