More than 100 million accounts are being shared by users on its platform and it is taking aim at them. In a test next month in five countries in Latin America, the streaming giant will limit the number of days you can watch on a TV outside of your home.
The company sneakily called the new measure the "add a home feature" in an announcement on Monday. Each account has a default home where you watch the service on a TV. If you want to use it for more than two weeks, you'll have to pay an extra fee.
If you don't pay within two weeks, you won't be able to watch on a TV. The add a home feature will be rolled out in six countries on August 22.
The new change was attributed to the company's decision to crack down on password sharing.
Long said that it was great that members love movies and TV shows so much that they would like to share them more broadly. Our ability to invest in and improve our service is undermined by account sharing.
I was alarmed when I first heard about it because I thought it might affect people who watch movies on public transportation or at the gym. The majority of its viewing is done on TVs.
Long said that users will be able to watch the service on their tablets, laptops, and phones with no restrictions. This type of viewing is considered a travel viewing.
The service uses information such as device IDs and account activity to determine a user's home.
The prices to watch on a TV outside of your home will be more expensive in Argentina than in the United States. Depending on your plan, the number of extra homes you can add will be determined. Basic plans can add one extra home, standard plans can add two homes, and premium plans can add up to three homes.
The company did not reply by the time of publication, despite Gizmodo asking if the feature would be rolled out in the U.S.
The company is trying to tackle slowing user growth and increase its revenue by adding a home feature. In March of this year, it announced a "guilt tax" for users in three Latin American countries and made them pay more to "add an extra member" to their account.
Long said that they value their members and recognize that they have many entertainment options. To be as thoughtful as possible about how we charge for use across multiple homes we are working hard to make great TV shows and films.