Netflix is looking to add a new fee for users who share their passwords with their friends. Currently, the company is testing the new tier in Latin America for users who have provided their passwords to their friends. These users will have to pay $3 more in order to share their passwords in other regions. Scroll down to read more details on the subject.
Netflix is Testing a New Password Sharing Plan That Charges $3 Above The Standard Fee
The terms of service of Netflix do not include account sharing with multiple households. While the company did not pay much attention to the aspect in the past, it is now looking to add an additional fee (Bloomberg). This is due to the fact that the company is losing money. Apart from money, the company also lost its subscriber count for the first time in the past 10 years.
The company is speculated to lose more money and subscriber count which is why the steps are being taken to charge an additional $3 fee. Other than this, the company is also looking to introduce an ad-supported tier which will be cheaper than its standard tier.
Talking about numbers, almost 222 million paying subscribers are sharing their Netflix passwords with 100 million households that are not paying. If users want to continue sharing their Netflix passwords, they would have to pay an additional fee of $3 above the standard pricing. This will allow the company to increase its revenue and retain what it can potentially lose in the future.
If a user moves to a new location, he will get an in-app notification after two weeks to add a new household and to pay the additional fee. The company also states that it is working to understand how the password-sharing crackdown will work before the change can be implemented globally. We will share more details on the subject as soon as further information is available.
Do you share your Netflix password with your friends? What do you think about the change? Let us know your thoughts in the comments section below.