Netflix is Introducing New Tactics to Prevent Password Sharing

Netflix is Introducing New Tactics to Prevent Password Sharing

Netflix has toughened up its knuckles against password-sharing offenders!

In the latest attempt to prevent the widespread practice of password sharing, Netflix will be launching a test where primary account holders have to pay an extra fee for users outside their households. This means sharing your Netflix password with someone outside your household may now cost you some extra cash.

“We always made it easy for people who live together to share their Netflix account, with features like separate profiles and multiple streams in our Standard and Premium plans,” the company said. “While these have been hugely popular, they have also created some confusion about when and how Netflix can be shared.”

Netflix will be rolling out its new strategy in three countries: Peru, Costa Rica, and Chile. There, viewers will be allowed to share their Netflix credentials, but they will get prompts to add an extra viewer to their package at the discounted price: 2,380 CLP in Chile, 2.99 USD in Costa Rica, and 7.9 PEN in Peru.

Here’s the breakdown of Netflix’s pricing in the said countries:

Country Basic Standard Premium Extra Member
Peru 24.9 PEN 34.9 PEN 44.9 PEN 7.9 PEN
Costa Rica $8.99 USD $12.99 USD $15.99 USD $2.99 USD

The action came in response to the exploitation of account-sharing outside the household. Most viewers tend to share their credentials with their friends, which has affected streamers’ ability to invest in more new content.

According to Netflix’s term of service, subscribers are not allowed to share their Netflix accounts outside their household – the term that has been increasingly exploited by users for years.

Well, this is not the first time Netflix has pulled such a stunt against password sharing. Last year, the streaming giant tested a new account verification tool to prevent unwarranted users from getting free rides off others’ accounts.

However, the introduction of new features like “add an extra member” or “transfer profile” shows that Netflix is pretty serious about its growth and looking for new strategies to maintain its streaming supremacy amidst tough competition. And by the look of it, it plans to invest in big production companies to generate much more lucrative originals.

Here’s how subscribers have reacted to the news:

Netflix Price Hikes

Another year, another Netflix price increase…

Every year, Netflix has increased its prices to invest in more content. The below chart illustrates the drastic rise in Netflix pricing over the years:

Price Jan 2022 Oct 2020 Jan 2019 Oct 2017 Oct 2015 Apr 2014 Apr 2013 2011
Premium (4K, 4 screens) $19.99 $17.99 $15.99 $13.99 $11.99 $11.99 $11.99 N/A
Standard (HD, 2 screens) $15.49 $13.99 $12.99 $10.99 $9.99 $8.99 $7.99 $7.99
Basic (No HD, 1 screen) $9.99 $8.99 $8.99 $7.99 $7.99 $7.99 N/A N/A

One of the big reasons Netflix needs money is to pay for big-budgeted action movies and original shows. In fact, streaming services are spending a frankly outrageous chunk of capital on original programming. And of course, to invest in big movies, they have got to pull that money from somewhere, so they have turned to us!

“We recognize that people have many entertainment choices, so we want to ensure any new features are flexible and useful for members, whose subscriptions fund all our great TV and films,” Netflix said. “We’ll be working to understand the utility of these two features for members in these three countries before making changes anywhere else in the world.”

The new strategy will let subscribers transfer user profiles to new accounts or Extra Member sub-account, making it easier for password moochers to pay for their own packages without losing their viewing history, My List, and personalized recommendations info.

In the said countries, Netflix will alert subscribers who share their accounts outside their household about their latest options. Whenever someone tries to log in to their account, Netflix will send a verification code for them to verify if the log-in is from the same household.

Netflix wrapped up 2021 with around 221.8 million paying subscribers in its bucket. Among which, 34% (75.2 million) were in the US and Canada.

Well, we knew the brutal password crackdown was coming, so it wasn’t a surprise for us. Anyways, enjoy your siblings’ or friends’ shared account until it lasts.

Jane Davies

Jane Davies

An entertainment enthusiast located in Austin. She is a tech geek, movie fan, and a dedicated binge-watcher. She is someone who enjoys keeping up with the current events and entertainment gossips.

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