In order to crack down on account sharing between households, Netflix is testing an added fee for users in Latin America who have given their passwords to people outside of their immediate home. Customers who share their passwords in other countries will have to pay more.
The test of an add-on fee for account sharing has been going on for a while in certain countries. Customers will have to pay a fee in Argentina, but it won't be as high in other countries.
Multi-household account sharing is not allowed by the terms of service, but it is a common practice. The company doesn't want the practice to continue because it has been losing money recently.
The company lost subscribers for the first time in a decade in the first quarter of the year. An ad-supported tier that will be more affordable is one of the things that is being worked on by the company.
An estimated 222 million paying households are sharing with an additional 100 million households that aren't being monetized as part of a strategy to increase revenue.
The option to pay the fee for access or move to a new account is available to customers in countries where the service is being tested. If a person uses an account in a place that is not one of their paying households for more than two weeks, the company will send an in-app notification requiring them to add a household for a fee.
In order to understand how the password sharing crackdown will work in test countries, it is necessary to expand the fee to additional countries.
There is only one streaming service that charges by the quality of the stream. The Basic no-HD plan that allows for streaming on a single device, $15.49 for a Standard HD plan that allows for two people to watch at the same time, and $19.99 for a Premium plan with Ultra HD streaming and support for four simultaneous viewers are all available in the US.
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