Netflix is testing a new solution to password sharing in Argentina, El Salvador, Guatemala, Honduras and the Dominican Republic. The test will prompt users to pay an additional fee if they use their account outside of their homes for more than two weeks, which costs 219 pesos ($1.17 in Argentina) and $2.99 elsewhere.
According to Netflix, in the test area, user accounts have a major "home" that can access Netflix through their devices, and they have the ability to use Netflix while traveling. The test will allow users to purchase additional "home", so that users in these places can also use the services on their devices in these places. In these countries, Netflix is also developing a feature that allows users to track where their accounts are used and restrict access. If the basic package is selected, the user can add an additional family. If the standard package is selected, you can add up to two, and if the premium package is selected, you can add up to three.
"Our members love Netflix's movies and TV shows so much that they want to share them more widely, which is good," Chengyi Long, director of product innovation at Netflix, said in a statement. "But today's extensive account sharing between families undermines our long-term ability to invest and improve services."
This expands Netflix's existing testing to push users in Costa Rica, Peru and Colombia to pay extra fees for users living outside their homes. Netflix currently charges users an additional 2380 CLP ($2.52) in Chile, $2.99 in Costa Rica, and 7.9 PEN ($2.02) in Peru to add up to two "sub-accounts" to existing accounts. The company has also begun experimenting with profile transfer tools, which should be to make it easier for someone to transfer their recommendations, viewing history and “my list.” This is a way the platform passively prompts password sharers to open new accounts or join sub-accounts.
In May this year, a report from Rest of World showed that there was confusion among users who participated in the test in Peru. Some users are reportedly unsure of Netflix's definition of "home", while others can bypass prompts designed to verify account owners. Netflix doesn’t state how it determines the difference between a family and a traveler, nor what if they refuse to pay an additional fee when asked.
Netflix first announced in March that it would test how to charge password sharing, just weeks after it announced a price increase for U.S. users. In addition, Netflix announced last week that it would develop an ad-enabled subscription option, which it said would work with Microsoft to power its ads. The company has clear reasons to find new ways to generate revenue. In April, after the early user boom of the pandemic, the company announced in April that it had lost users for the first time in more than a decade. The company's next quarter earnings report will be released Tuesday afternoon.
