Netflix Could Soon Charge Users for Sharing Passwords

The American OTT giant Netflix could soon start charging users for sharing their passwords with others. The company will soon roll out its testing features in South American markets where it will assess the trend of password sharing among the subscribers.

The feature could first launch in three Latin markets – Chile, Costa Rica, and Peru. The company has not disclosed when its experimental features will go live elsewhere.

Netflix could impose charges on its customers upon sharing their Netflix account passwords beyond their own family. This is in part to keep itself afloat commercially. The OTT content has intensified and the American giant is taking heat.

Netflix spends multimillion on series and movies every year. But its users sharing passwords could dull its investment capacity. Therefore, an implied restriction on password sharing will encourage individual subscriptions and help improve its finances too.

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Password sharing has impacted Netflix’s investment capacity

Netflix has been lenient on its customers to share their account passwords and it has made the platform also popular. Chengyi Long, Director, Product Innovation says that features such as “separate profiles and multiple streams in our Standard and Premium plan” have made it easy for sharing passwords. But as he adds, such features have created “confusion about when and how Netflix can be shared.”

The improper sharing of accounts outside the household has affected Netflix’s “ability to invest in great new TV and films for our members,” Long adds in a statement.

Although Netflix doesn’t want subscribers to share their accounts beyond their households, users have usually turned deaf to this rule. But the company will test its new feature wherein users will need to pay to “add extra member”. It will keep viewing history, and personalized recommendations intact. These features will first be tested on users in Chile, Costa Rica, and Peru.

“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,” long elaborated.

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In its attempt to push users to make their own account, Netflix also used a prompt last year to compel users to make their own password. It could now further strengthen the stance by charging users for sharing their passwords.

Are you a Netflix subscriber? How will this rule impact your subscription? You can share with us in the comments below.