Netflix knows when users have shared their password with others outside of their household and is now looking at ways to charge extra.
Starting in three countries, Netflix is testing plans that will allow users to share their password more easily and securely, at a price. Or users can be spun off on to their own Netflix account.
Netflix says “there’s some confusion” regarding when and how a Netflix can be shared. The company admits it’s previously made it easy for users to share their password. However, this is only intended for other users within the same household.
Chengyi Long, Director, Product Innovation, Netflix says password sharing is affecting Netflix’s ability to invest in content. In other words, it’s affecting their income and impacting subscriber figures that their investors closely monitor.
In a statement, Long confirmed Netflix’s proposed solution:
“We’ve been working on ways to enable members who share outside their household to do so easily and securely, while also paying a bit more. And over the next few weeks, we’ll launch and test two new features for our members in Chile, Costa Rica, and Peru.”
In the three test countries, users will be able to choose from two options:
- Add an extra member on standard and premium Netflix plans for the equivalent of between £1.50-£2.50 per user per month. (The amount varies in each country and conversion into GBP is subject to currency fluctuations.) This will allow users to make their previous password sharing arrangements “official” for a price.
- Transfer to new account will allow existing users who share an account with others to move to their own standalone basic, standard or premium account.
What next?
Netflix hasn’t indicated what they will do if users ignore both options to continue password sharing outside of households. However it seems Netflix may reserve the right to charge subscribers for out of household usage.
Long confirmed the outcome of the pilot will be evaluated before it’s rolled out elsewhere in the world:
“We’ll be working to understand the utility of these two features for members in these three countries before making changes anywhere else in the world.”
The changes come as Netflix tries to increase income per subscriber by increasing subscription prices. Last week, Netflix confirmed above-inflation price rises in the UK and Ireland. Netflix subscriber growth has stalled since pandemic lockdowns were eased.