Netflix has allowed users to share passwords for years, however, the streaming giant is now working on limiting users sharing their passwords. The streaming giant issued a press release stating that subscribers will now pay to share Netflix outside their households.
According to Chengyi Long, Director of Product Innovation, the decision to stop the sharing of accounts between households because it is impacting Netflix’s ability to invest in great new TV and films.
The streaming giant says it has been working on ways to enable members who share outside their household to do so easily and securely, while also paying a bit more. Over the next few weeks, it will be launching and testing two new features for its members in Chile, Costa Rica, and Peru :
- Addition of up to 2 new subscribers at a lower price: 2,380 CLP in Chile, 2.99 USD in Costa Rica, and 7.9 PEN in Peru. Members on the Standard and Premium plans will be able to add sub-accounts for up to two people they don’t live with – each with their own profile, personalized recommendations, login, and password
- Transfer of a profile to a new account. Members on the Basic, Standard, and Premium plans can enable people who share their account to transfer profile information either to a new account or an Extra Member sub-account – keeping the viewing history, My List, and personalized recommendations.
Netflix has been recording declining subscriber numbers, during the first stages of the COVID-19 pandemic, Netflix recorded massive gains in its net paid subscriber numbers but this took a hit in 2021. Comparing 8.24 million in Q4 2020 to 8.28 million in Q4 2021, it is obvious there is a steady decline. The move could also be how Netflix addresses this.
The entrance and rise of other streaming platforms like Disney+ and Amazon prime have also adversely affected the fortunes of Netflix.