Netflix to start testing a new feature that will prompt its users to pay an extra amount if they are sharing the account with people outside their family.
Initially, the testing will take place in Chile, Costa Rica, and Peru, and then roll out into other markets. Subscribers with premium and standard accounts will be offered an option for adding a sub-account for people who don’t live with them. The sub-accounts will have their personalized recommendations as with any other Netflix plan.
But the catch here is that the sub-account will have its password and Netflix login. And additionally, if the sub-account holder chooses to get their own Netflix subscription their viewing history and personalized watch list will also get transferred over.
Netflix, won’t be relying on GPS for this feature instead it will use the same services it uses for its end-to-end users like IP addresses, device ids, and other devices related information. With this information, Netflix can identify if there is any sharing outside the household. The extra account will not be counted as a subscriber while they are using someone else account.
The prices in the test markets are 2380 CLP in Chile, $2.99 in Costa Rica, and 7.9 PEN Peru. The prices are less expensive than the Netflix account. The bill for the sub-account will still be going to the Main account holder.
“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,” said Chengyi Long, director of product innovation, in a post on the company blog. “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” he added.
This announcement comes in the light of Netflix raising the prices by $1 and $2 in North America earlier this year.