Netflix previously raised prices to plan in the United States, and then again earlier this month in the United Kingdom and Ireland. Now, the company has announced that it is working to eliminate the practice of sharing keywords on the platform, which is more common than owning a Netflix subscription. Netflix announced that it will no longer allow people who do not live in the same household to share passwords. According to a blog post, the company intends to charge people who share passwords additional fees for privileges.
Netflix, the popular video streaming service, intends to charge users extra to pause password sharing outside of one household.
“While these have been extremely popular, they have also created uncertainty about when and how Netflix can be shared.” As a result, accounts are shared among households, limiting Netflix’s ability to invest in great new TV and movies for its members, according to Chengyi Long, Netflix’s director of product innovation.
The main account’s owner will receive an email with a code to enable the new sub accounts. The code must be entered by the user to confirm that the additional devices are part of their household.
Members will have to pay an additional $2 to $3 to share their passwords with people outside the home, according to the company, which will launch and test two new features in select markets. Netflix’s subscription prices in the United Kingdom and Ireland have recently increased.
Netflix is testing its service in three countries: Peru, Costa Rica, and Chile. Customers will be given instructions on how to add additional viewers to their package for a discounted price of CLP 2,380 (roughly Rs 230), $ 2.99 (roughly Rs 230) in Costa Rica, and PEN 7.9 (roughly Rs 160) in Peru. Customers on the Basic, Standard, and Premium plans can allow users who share their accounts to transfer their profile information to a new account or an Additional Member sub-account, preserving their viewing history, My List, and personal recommendations. Netflix hasn’t said how long these tests will last before the full launch.
According to Ampere Analysis, the video streaming behemoth has 14 million UK subscribers and 600,000 in Ireland. The Standard plan, which offers HD quality streaming to up to two devices and used to cost $7.82 but is now $9.13 in the UK, is the most popular.
New subscribers will be affected by this change, while existing subscribers will be notified 30 days before the new prices take effect. Netflix raised the price of its monthly subscriptions in the United States and Canada in January.
This isn’t the company’s first attempt to prevent non-customers from sharing passwords. Netflix tried out the Account Verification tool last year to prevent unauthorized users from accessing someone else’s Netflix account.
The new price, on the other hand, is part of a strategy that is more strategic than the streaming giant’s. As a result, the company can continue to grow its customer base, which has been steadily increasing in recent months.
