Netflix has long taken a lax approach to users sharing their passwords with family or friends, but the company has announced a slew of measures that just might get you through checkout if you’re not. the only user of your account.
If you’ve ever shared your Netflix password with someone other than your family, Netflix probably knows it. Although the American giant has not yet banned this practice, and moreover has pledged never to do so, the streaming service is taking new measures to monetize it.
Indeed, just days after rolling out its latest price hike in select countries, Netflix has announced that it will crack down on the widespread practice of sharing passwords between people who do not live under the same roof encouraging them to pay extra for this privilege.
Netflix wants to monetize account sharing
Netflix has launched a test to encourage account holders to pay extra to add other users outside their own household. Up to two additional members will be able to have their own profilepersonalized recommendations, a personalized login and password.
For now, this new measure is only tested in three countries: Costa Rica, Peru and Chile. The good news is that the rate is for now less than 3 euros in these three countries. However, Netflix will evaluate the results before determining whether to increase the fees or if the practice will be introduced to the rest of the world.
As a reminder, Netflix recently saw its shares plunge following quarterly results showing slowing subscriber growth. Moreover, we know that account sharing causes Netflix to lose around 5 billion euros per year. All this lost money is therefore not reinvested in original contentand gives rise to price increases for all subscribers. It is therefore not surprising to see the American giant want to charge subscribers who deviate from the conditions of use of its platform by sharing their password with people outside their household.