Netflix Introduces a Fee for People Who Share Passwords Outside Their Households

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f you live in Chile, Costa Rica or Peru and enjoy Netflix content on someone else’s tab—specifically, someone you do not live with—you’re about to see have an opportunity to pay a nominal amount for your own access. In the past, Netflix has taken a ‘users sharing their passwords is cool as long as they don’t sell them’ approach. On Wednesday, however, the streaming service announced that it would be testing a small fee—between $2-3—for users to share their account with someone in a different household. Depending on the results of this test, users in other countries might expect to see an expansion of this opportunity in the near future.

“We’ve 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,” Netflix said in a blog post Wednesday. “While these have been hugely popular, they have also created some confusion about when and how Netflix can be shared. As a result, accounts are being shared between households — impacting our ability to invest in great new TV and films for our members.”

Basically, if you’re not sharing your Netflix account with anyone outside of your household, nothing is going to change. However, if you’ve been tossing your Netflix credentials around like confetti to all your friends and family, the streaming service is politely requesting you stop.

Through this test, Netflix will start letting standard- and premium-plan customers add accounts for up to two people they don’t live with. These “extra members” will have their own profiles, personalized recommendations, and logins and passwords, and will be charged a nominal fee. The fee is less than what a new user would have to pay to create an account, but Netflix maintains it will help bankroll more original content.

“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. 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.”

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