Netflix is testing a new approach to password sharing in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic. The test will prompt users to pay an additional fee of 219 pesos ($1.17 in Argentina) if they use the account outside their home for more than two weeks and $2.99 elsewhere.
According to Netflix, in the test regions, user accounts have a primary “home” where they can access Netflix from their devices, and they have the ability to use Netflix while traveling. The test will allow users to purchase additional “homes” so that users in those places can also use the service on devices in those places.
In those countries, Netflix is also working on a feature that will let users track where their accounts are being used and restrict access. Users can add an additional family if they choose the Basic plan, up to two if they choose the Standard plan, and up to three if they choose the Premium plan.
“Our members love Netflix movies and TV shows so much, it’s great that they want to share them more widely,” Chengyi Long, Netflix’s director of product innovation, said in a statement, “but today’s widespread account sharing among households Undermining our long-term ability to invest in and improve our services.”
This expands on Netflix’s existing tests that push subscribers in Costa Rica, Peru and Colombia to pay extra for those who live outside their homes. Netflix currently charges users an additional 2,380 CLP ($2.52) in Chile, $2.99 in Costa Rica, and 7.9 PEN ($2.02) in Peru to add up to two “sub-accounts” to existing accounts.
The company has also started experimenting with a profile transfer tool, which is supposed to make it easier for someone to transfer their recommendations, viewing history, and My List. This is a way for the platform to passively prompt password sharers to open new accounts or join sub-accounts.
In May, a report from the Rest of the World revealed confusion among users who took the test in Peru. Some users were reportedly unsure of Netflix’s definition of “home,” while others were able to bypass prompts designed to verify the account owner. Netflix didn’t say how it determined the difference between households and users who were traveling, or what would happen if they refused to pay extra when asked.
Netflix first announced in March that it would test charging for password sharing, just weeks after it announced a price increase for U.S. users. In addition, Netflix also announced last week that it was developing an ad-supported subscription option, and it said it would partner with Microsoft to power its ads.
The company has a clear reason to look for new ways to generate revenue. In April, after an early user boom in the pandemic, the company announced in April that it had lost users for the first time in more than a decade. The company’s next quarterly earnings report is due on Tuesday afternoon.
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