Netflix is changing the way it handles users sharing passwords. Currently testing the “add extra member” surcharge for subscribers in Chile, Costa Rica, and Peru, the streaming service has started offering an alternative option in Argentina, Dominican Republic, El Salvador, Guatemala, and Honduras: “Add home…”
The new system gives bill-paying customers the option to add an entire household rather than individual users to their existing monthly subscription for a small fee (currently equivalent to $2.99). Announcing the decision, Netflix said that members on its basic plan can add one extra home, up to two extras as standard, and up to three premium extras.
Subscribers who choose to purchase these additional homes will be able to control where their accounts are used and remove additional homes at any time through the “manage homes” feature in their Netflix settings.
Netflix executives have spoken about plans to expand password sharing surcharges to major global markets like the US and UK in the “short to medium term”, but it’s not yet clear which of the two systems tested so far will roll out globally.
Interestingly, the streaming giant reportedly ran into difficulties during the first months of its “add extra members” experiment in Chile, Costa Rica, and Peru, and there were reported problems with announcing, moderating, and enforcing password sharing fees for subjects.
According to a recent survey, most of the people involved, at least in Peru, are confused. They ran into problems as they were confused by Netflix’s loose definition of “household” and was unclear as to whether additional fees would be required. So it makes sense for the publisher to test an entirely new (and potentially simpler) system in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras.
As for why Netflix is taking action against free account-sharing users, it said “widespread account sharing among households undermines its long-term ability to invest in and improve [Netflix] service.” Company executives estimate that there are more than 100 million non-paying households worldwide, of which 30 million are in the US and Canada alone.
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