Users who share their account with others in certain countries will be charged a fee. The streaming giant is trying to crack down on password sharing. Users will be asked to pay an additional fee if they use an account outside of their home. The feature will be tested in six countries next month.
Each account will have one home where you can access the service on any device. The company will charge you a fee if you allow someone to use your account in another home. To add a home to your account, you'll have to pay an extra 219 pesos in Argentina and $2.99 in the other regions. Standard users can add up to two extra homes and Premium users can add up to three extra homes. In the test areas, users will be able to control where their account is being used and remove homes from their account settings page.
Chengyi Long, the director of product innovation at the company, said in a statement that it was great that members love the service so much. Our ability to invest in and improve our service is undermined by account sharing.
A similar feature called "add extra member" was launched in three other countries. If subscribers are sharing the service with people outside of their own home, they will have to pay more. For a fee that is less than the cost of the full-priced service, households can add up to two subs.
The solution doesn't rely on location-based data. The information it uses to give its service to its end users is the same information it uses to give it to the end users. This method can be used to identify persistent sharing outside a household.
The company announced during its first-quarter earnings call that it will expand tests that charge members a higher price if they share their account with other people. To make sure it gets the balance right in terms of how much extra to charge subscribers who have shared their account with other users outside of their own household, it will take about a year or so for it to be fixed.
Over 30 million of the 100 million households that share their user accounts are in the US and Canada. By asking members who are sharing their accounts to pay more, it hopes to strike the right balance between still allowing sharing and also helping to bring in revenue from everyone who is viewing and getting value from its service.
The company also said it will introduce an ad-supported plan as part of its plan to make money. The streaming service announced last week that it was partnering with Microsoft in order to make more money from ads.
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