Netflix Examines Another Method for Password Sharing Fees

Netflix will charge consumers in five Latin American nations to use their account in a second house, the test will show the firm if they can produce more income.

Customers in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic will be charged if they use an account for more than two weeks away from home, the business stated Monday. This won't disrupt Netflix on mobile devices or vacationers. An 'extra house' costs $1.70 in Argentina and $2.99 elsewhere.

Netflix says more than 100 million households use accounts paid for by others and blames password sharing for its slow membership growth. The corporation lost 200,000 clients in the first quarter and predicted 2 million in the second. Its share price has plunged more than 65% this year as investors worry about streaming.

“Today's extensive account sharing across families limits our capacity to invest in and enhance our service,” said Chengyi Long, director of production innovation.

Latin America has a high rate of password sharing, where Netflix is testing paid access. Netflix wants to curb sharing without penalizing subscribers or alienating viewers. Some consumers fear losing account access since the initiative has been presented as a crackdown.

Netflix is exploring fees for sharing accounts. In its initial attempt, the business charged clients in Chile, Costa Rica, and Peru to join a member. This new user sets up a sub-account with their own email address, gets their own stream, and may use Netflix alongside the current account holder within plan constraints.

A basic plan only permits one device. Standard plan permits two devices, premium four.

This current attempt targets users with numerous household accounts. If they use an account somewhere other than one of their paying households for more than two weeks, they will receive an in-app notification asking them to either add a household or change their primary household to the new location. Customers may add or delete properties. Adding homes doesn't enhance Netflix viewing capacity.