Are you one of those people who doesn’t actually pay for a Netflix account? If so, are you mooching off a family member, or are you using a friend’s password? Netflix is fully aware of this phenomenon happening, and they’re doing their best to try to fight this.
Netflix has announced that it will trial a plan that will charge account owners that share passwords with people who do not live in the same house. This trial will begin in Chile, Costa Rica, and Peru first.
If an account is being used across multiple homes, then subscribers will be asked if they want to add a second user to the package for $2.99 in Costa Rica, 2380 peso in Chile, and S/7.9 in Peru.
Those who will be kicked off the account will have the ability to transfer their data to a completely new account or a sub-account to make sure that they will still have their viewing history and recommendations.
Netflix said that they will evaluate how this trial goes in the countries before making this happen in other countries.
Of course, the reason Netflix is introducing this is because password sharing is eating into their profit margin. Sharing passwords across households is affecting the company. The company maintains that they encourage sharing accounts within the same house.
Director of Product Innovation at Netflix Chengyi Long shared: “Accounts are being shared between households – impacting our ability to invest in great new TV and films for our members.”
Netflix does technically ban password sharing across multiple households, as stated in the terms and conditions. According to the T&C: “The Netflix service and any content accessed through the service are for your personal and non-commercial use only and may not be shared with individuals beyond your household.”
This plan is in sharp contrast to what the company has previously said about password sharing. In 2016, co-CEO and Chairman Reed Hastings was not concerned about password sharing, and even said: “We love people sharing Netflix. That’s a positive thing, not a negative thing.”