Netflix Experimenting With Added Fee for Password Sharing

It’s no secret that subscribers of streaming services will often share their passwords with people outside of their home, with Netflix attempting to find a way to cut back on this practice by implementing an extra fee on top of the subscription cost to add users outside the main household. This experiment will start rolling out in the coming weeks and will be tested in Chile, Costa Rica, and Peru. The fee for this experiment will be roughly 30% of the cost of a Basic plan, which would equate to a $3-4 fee for subscribers in the US.

“We’ve always made it easy for people who live together to share their Netflix account, with features like separate profiles and multiple streams in our Standard and Premium plans,” Chengyi Long, director of product innovation at Netflix, wrote in a blog post about the experiment. “While these have been hugely popular, they have also created some confusion about when and how Netflix can be shared. As a result, accounts are being shared between households — impacting our ability to invest in great new TV and films for our members.”

This test will also only be made available to members who have a Standard or Premium plan. While all three plans allow unlimited access to Netflix’s offerings, the major differences are the number of simultaneous screens that can watch Netflix, with subscribers also having to upgrade to Standard for HD options and Premium for Ultra HD.

Another feature that Netflix will be experimenting with is transferring a profile to a different account. Currently, Netflix allows up to five different profiles to build unique viewing lists, with these profiles also using specific viewing histories to craft suggestions based on each profile, with profiles also ensuring you don’t lose your place with any series you might be watching. Transferring a profile to a new account will allow the addition of an extra member while maintaining the history and lists to ensure curated suggestions for each user.

The blog post added, “We recognize that people have many entertainment choices, so we want to ensure any new features are flexible and useful for members, whose subscriptions fund all our great TV and films. 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.”

It’s currently unknown how many other territories this experiment could extend to or if Netflix will begin restricting sign-ins from outside the subscriber’s household.

What do you think of this new feature? Let us know in the comments below!