Netflix tests new charges for password sharing, offering up to two ‘sub-accounts’ per subscriber
- Netflix said it is testing charging an additional US$2 to US$3 to subscribers who share their accounts with people outside their home
- The new model will first be tested in Chile, Costa Rica and Peru as the company looks to counter slowing growth
The US-based steaming service has long taken a relaxed approach to users sharing passwords with family or friends, but recently saw stock dive on quarterly results that showed cooling subscriber growth.
Competition in the streaming television market meanwhile has been ramping up, particularly from Disney+, with the cost of producing coveted original shows climbing as well.
In the coming weeks, Netflix will begin offering subscribers in Chile, Costa Rica and Peru the option to add as many as two people to “sub-accounts” at a monthly fee of US$2 to US$3, Netflix product innovation director Chengyi Long explained.
“We recognise 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,” Long said in a blog post.
The Silicon Valley streaming titan has been working on ways for subscribers to share “outside their household … while also paying a bit more,” she said.
Netflix said it will allow people already sharing accounts to transfer profile and viewing history information to new sub-accounts.