Netflix tests a new way to charge users who share password with friends

Netflix is testing a new way to end the free password sharing business. The company recently launched an “add extra member” option for users living in Chile, Costa Rica, and Peru. The feature requires people outside your home to pay to use your Netflix account, which isn’t the case in India yet. The video streaming platform has now announced a similar “add a home” feature in some more regions.

Netflix will begin testing the new “add a home” option in countries including Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras. Netflix hasn’t revealed any details about charging users in India ors sharing password outside their homes yet. But, since this is a company-wide plan, such charges are meant to be introduced in the country in the days to come. The company previously hinted that it will start charging all users for sharing their Netflix account passwords by end of the year. So, we can expect the company to bring a similar feature as “add a home” to India in the months to come.

End of Netflix password sharing
The new “add a home” button will be seen in the said regions from next month. Once the feature is rolled out, every Netflix account in these areas will include one home where anyone living in the same home will be able to access the platform on any device. They will also be able to access Netflix while traveling.

Now, if you wish to allow someone to use your Netflix account in another home, you will need to pay a fee for it. You will be able to add a home to your account by paying an extra 219 pesos in Argentina and $2.99 in the other test regions. For now, we are not sure how much Netflix will charge Indian users for sharing their passwords with people outside their homes.

The company said, users on a Basic Netflix plan will be able to add one extra home, while Standard and Premium users will be able to add two and three extra homes, respectively. Netflix will also allow users in these test areas to control where their account is being used and also give them the power to remove homes from the Setting page whenever they want.

Announcing the move, Netflix’s director of product innovation, Chengyi Long said, “it’s great that our members love Netflix movies and TV shows so much they want to share them more broadly.” “But today’s widespread account sharing between households undermines our long term ability to invest in and improve our service,” he added.

The company recently announced that it is testing a cheaper subscription plan with ads. Currently, Netflix doesn’t offer ads but considering the sudden dip in the company’s share prices, CEO Reed Hastings believes these steps will help recover shares as well as users. Earlier this year, the company announced that for the first time in a decade lost 2 lakh subscribers and blamed password sharing business for it. India Today