Netflix To Test Extra Fee For Users Who Share Their Password

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Netflix Inc (NASDAQ:NFLX) is countering the password sharing issue among subscribers by announcing that users who share their password with anyone outside their household will have to pay an extra fee. The streaming giant said the measure would be tested in specific markets.

Paying More

As reported by CNBC, Netflix claimed in a press release that the sharing of accounts among users in different homes is “impacting our ability to invest in great new TV and films for our members.”

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New Netflix subscribers can create different profiles that can be used by other people who share the home. However, from a technical standpoint, nothing prevents other people who live in a different space from using the account, once the password is shared.

This means that those who have been shared the password are using the streaming service at no cost, and they can also access it from different devices and locations.

The company is trying to put an end to through the “Add an Extra Member” function, which means that “Members on our Standard and Premium plans will be able to add sub accounts for up to two people they don’t live with —each with their own profile, personalized recommendations, login, and password at a lower price.”

Test Details

The company adds in the statement that “during the next few weeks,” it will implement the two new options on a trial basis in Chile, Costa Rica, and Peru.

Another implemented option is the “Transfer Profile to a New Account,” under which members of the Basic, Standard and Premium plans will be able to transfer shared profile information to a subsidiary account or a new account with a different subscription.

Whichever alternative they choose, according to Netflix, this option will allow them to retain viewing history, content added to My List, profile customization, and recommendations based on history.

The company will notify users in the three countries where the test will take place. The release also states that, if the platform detects an account is being accessed from outside the home, it can ask the user to enter a verification code to approve the login.

Netflix is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders' families.