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Netflix Cracks Down On Password Sharing And Levy Addition Charges

It’s not the first time Netflix has toyed with a password-sharing ban. Recently tested account verification tool to prevent unauthorised account access.

Netflix Cracks Down On Password Sharing And Levy Addition Charges

Netflix stated only a few weeks ago that it is cracking down on the prevalent practice of password sharing between people who do not reside in the same home by requiring them to pay an additional charge for the privilege.

In a blog post, Chengyi Long, head of product innovation expressed that while these “household plans” have been tremendously popular, they have also generated some uncertainty regarding when and how Netflix may be shared. As a result, accounts are being split among homes, limiting their capacity to invest in outstanding new television and films for their customers.

Netflix will test its strategy in three countries: Peru, Chile and Costa Rica, over the course of a year. In addition to the option to move watching profiles into new accounts (your own primary account or someone else’s), customers will get reminders to add an extra viewer to their subscription at a reduced price: 7.9 PEN in Peru, 2.99 USD in Costa Rica, and 2,380 CLP in Chile.

It’s not the first time Netflix has toyed with a password-sharing ban. Last year, the business tested an account verification tool to prevent unauthorised users from using other people’s accounts.

However, the addition of “add an extra member” and “transfer profile” capabilities imply that Netflix is thinking carefully about how it may continue to grow when membership counts stagnate. If Netflix wants to maintain its position as the streaming king, it must continue to bankroll increasingly expensive originals. That money has to come from someplace, Long implied in Netflix’s announcement today.

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