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Netflix’s New Password-Sharing Crackdown Test Will Make Subscribers Pay for Users Outside Their Households

Lauren Forristal

The party may be over for password sharing. Netflix is cracking down on illicit password-sharing and will soon launch a test that makes primary account holders pay an additional fee for users outside their households. So if you finally want to cut off your uncle, neighbor, and ex-boyfriend from using your account, do so now. The test will launch in Chile, Costa Rica, and Peru first. It may or may not expand beyond those markets.

The terms of service states, “The Netflix service and any content accessed through our service are for your personal and non-commercial use only and may not be shared with individuals beyond your household.” Last year, the company ran a limited test prompting users to enter their account credentials as a way to nudge freeloaders into paying for their own accounts.

According to a blog post written by Chengyi Long, director of product innovation at Netflix, the upcoming test will let members who share their accounts with people outside their household to do so “easily and securely, while also paying a bit more.”

“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,” Long wrote. “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.”

Long also highlights two new features they will test:

  • Add an Extra Member: Subscribers on Standard and Premium plans will be able to add sub-accounts for up to two people they don’t live with. Both “sub-accounts” will come with their own profile, personalized recommendations, login, and password.

  • Transfer Profile to a New Account: Members of the Basic, Standard, and Premium tiers can allow people who share their account to transfer profile information either to a new account or an Extra Member sub-account. The viewing history, My List, and personalized recommendations will be transferred along with it, so nothing gets lost.

The transfer feature would make it easier for password moochers to pay for their own plans, making Netflix freeloaders virtually obsolete.

The cost for adding a sub-member is 2380 CLP in Chile, $2.99 USD in Costa Rica, and 7.9 PEN in Peru.

Subscription Prices

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
Chile 5940 CLP 8320 CLP 10700 CLP 2380 CLP

As with other tests, the streamer has conducted, there’s no guarantee that the option to pay for non-household members will end up permanently part of the service. Long wrote in the post, “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.”

Over the next few weeks, Netflix will notify members who share their accounts outside their household about the new options. A member may be prompted to verify their account only if a device outside of their household logs in to the account; Netflix may then ask the user to verify the login from the device by sending a verification code.

Netflix

Netflix is a subscription video streaming service that includes on-demand access to 3,000+ movies, 2,000+ TV Shows, and Netflix Originals like Stranger Things, Squid Game, The Crown, Tiger King, and Bridgerton. They are constantly adding new shows and movies. Some of their Academy Award-winning exclusives include Roma, Marriage Story, Mank, and Ma Rainey’s Black Bottom.

Netflix offers three plans — on 1 device in SD with their “Basic” ($9.99) plan, on 2 devices in HD with their “Standard” ($15.49) plan, and 4 devices in up to 4K on their “Premium” ($19.99) plan.

Netflix spends more money on content than any other streaming service meaning that you get more value for the monthly fee.