The days of free Netflix account sharing are numbered. The streaming giant has now provided details of how it will get account sharers to pay.
As previously reported, Netflix has already launched a feature to add an extra member in some countries. Now it has started a separate trial that could force more users, including those in the UK and Ireland, to pay.
Beginning in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras, Netflix users will pay $2.99 (or the local equivalent) per month per extra home if they engage in account sharing.
The cost of adding another home is based on the lower overall cost of a Netflix subscription in the pilot countries. For example, Argentina is one of the cheapest places in the world for a Netflix subscription. This means that if this rolls out in the UK, the monthly extra home charge would be higher.
This is how it works
In the pilot countries…
- All Netflix subscriptions are now even more explicitly advertised for single household use.
- Members on the Basic plan can add one extra home for $2.99 per month, per extra home.
- Members on the Standard plan can add two extra homes for $2.99 per month, per home.
- Members on the Premium plan can add three extra homes for $2.99 per month, per home.
- Users within the household can access Netflix outside of their home on a tablet, laptop or mobile.
- A new manage homes feature with the Netflix account setting will allow users to add or remove homes at any time.
The changes come into force during August.
However, it’s unclear how this will be policed. Users are still allowed to access Netflix on their devices outside of their home. How will Netflix determine when a device is being used for legitimate out-of-home use and when it’s being used to give another household access to Netflix?
Netflix is eager to stop freeloading as it battles to stop a slide in subscribers. The company believes its figures can be improved by converting freeloaders to paying subscribers. Netflix is also concerned it’s missing out on vital income.
The company will monitor this and the other pilot running in Costa Rica, Chile and Peru to see which works best.
Announcing the extra fees, Chengyi Long, Director, Product Innovation at Netflix commented:
“Today’s widespread account sharing between households undermines our long term ability to invest in and improve our service.”