Netflix is changing the way it handles password-sharing freeloaders.
Having already rolled out an “add extra member” surcharge for subscribers in Chile, Costa Rica and Peru, the streaming service has begun testing an alternative “add a home” feature in Argentina, Dominican Republic, El Salvador, Guatemala and Honduras.
The new system gives paying customers the option to add entire families – rather than individual users – to their existing monthly subscriptions for a small fee (currently equivalent to $2.99 / £2.50 / AU$4). On a blog post (opens in new tab) announcing the change, Netflix said members on its basic plan can add one extra home, standard up to two extras and premium up to three extras.
Subscribers who choose to purchase these additional homes will be able to control where their accounts are being used – and remove homes at any time – via a “manage homes” feature in Netflix settings.
Netflix executives have been talking about their plans to expand password-sharing surcharges to key global markets like the US and UK in the “short to medium term”, although it’s not yet clear which of the two systems tested so far will do. the cut. In all world.
Interestingly, the “add extra member” trial in Chile, Costa Rica, and Peru would have encountered difficulties in its initial months, with test subjects complaining about the way password-sharing rates were advertised, policed and implemented.
according to one recent research (opens in new tab)many of those involved — in Peru, at least — were confused by Netflix’s vague definition of “family” and frustrated by the lack of clarity about whether they qualify for the additional fee.
It makes sense, then, that the streamer is testing an entirely new (and potentially simpler) system in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras.
As for why Netflix is cracking down on account-sharing freeloaders, the streamer says (opens in new tab) that “widespread sharing of accounts between families undermines [its] long-term ability to invest and improve [the Netflix] service.” Company executives estimate that there are more than 100 million non-paying households worldwide, with more than 30 million in the US and Canada alone.
Given the recent streamer subscriber losses, too, has become more important than ever for Netflix to maximize its revenue potential. Either way, the company’s second-quarter earnings call is scheduled to take place later today (June 19), so we can learn more about how and when these password-sharing rates will roll out to Netflix subscribers worldwide.
If they do in the not-too-distant future, would you prefer to pay a surcharge per household or per user? Vote in our Twitter poll below:
Netflix is following a new password sharing system that would allow you to share your account with other families rather than individual users. What do you think?July 19, 2022
