For Netflix subscribers, password sharing is still widespread between families and households. However, this may all be about to change as the streaming platform has launched a new initiative to crack down on accounts that share one account across family members and friends living in different houses. This week Netflix announced they are starting a new program that will see subscribers who use an account in multiple households having to purchase a “sub-account,” which can then be used by someone who doesn’t live at the same address. The new feature is being trialed in Costa Rica, Peru and Chile over the coming month, but it seems that it could become a new norm for Netflix subscribers in the not too distant future.
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In a new blog post by Netflix director of product innovation Chengyi Long, she explained how the ability to log into one account from multiple locations has resulted in some “confusion” over who can and cannot watch Netflix via one account. She said, “As a result, accounts are being shared between households – impacting our ability to invest in great new TV and films for our members.”
Netflix has made it clear that they will be analyzing the data from their three trial countries very carefully before making any widescale changes. Still, they are certainly driving forward with plans to make sure that their subscribers are not losing them money by sharing their accounts between many family members living in different locations.
How Would a “Per Household” Subscription Work in Netflix’s New Proposal?
According to the new initiative, current Netflix subscribers would still be able to watch Netflix outside their own home but would be required to confirm their identity when logging in. This would likely take the form of a code texted to a mobile number when logging in that would be sent to the registered account holder’s number.
For anyone else wanting to use the same account from a different location, the cost of adding “Extra Member” sub-accounts will be the equivalent of $3 in Costa Rica and $2 in Peru, and would allow additional users to create their own profiles on the main account. While this means that those currently using someone else’s account would see an additional charge, it is still considerably less than having to take out a whole new subscription.
The blog post explains that subscribers will have the option to:
While Netflix’s subscriber numbers grew by around 10% in 2021, its growth is still slightly behind the projections that they hoped for. This could be in part to the constantly increasing cost of a subscription, which increased again by between $1-$2 a month in January. In a time when every big studio is looking to bring home their content to their own streaming platforms, and with the general cost of living constantly on the rise, there are many families who will need to make a careful choice about which streamer they choose to align themselves with in the long term. For many Netflix users, the days of sharing one account among different homes to alleviate the cost could well be numbered.
Add an Extra Member: Members on our 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 - at a lower price: 2,380 CLP in Chile, 2.99 USD in Costa Rica, and 7.9 PEN in Peru;
Transfer Profile to a New Account: Members on our 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.
