Netflix Introduces Password-Sharing Payment Plan With ‘Add a Home’ Feature in Five Countries

Netflix users share their login information with more than 100 million non-paying households worldwide, according to the company.

By ANI | Updated: 19 July 2022 18:29 IST

Netflix users share their login information with over 100 million non-paying households

Highlights

Customers with the Basic plan may add one additional home
Customers can add up to two Extra Member accounts
Netflix states that it may occasionally ask you to verify your device

Netflix is experimenting with a new method of payment from freeloaders who steal passwords. According to a report by Bloomberg, the company is introducing a feature that allows customers to legitimately enable access from a second home for an additional monthly fee in five Latin American nations. The "add a home" feature will be available on Netflix in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras starting the following month.

Anyone in each additional home will then be able to stream Netflix on any device at a price that is less expensive than full standalone membership, according to the report.

This comes after the streaming service in March launched a feature called "add extra member" in Chile, Costa Rica, and Peru that allows users to pay a monthly fee to grant access to Netflix to people outside of their households.

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According to Netflix, users share their login information with more than 100 million non-paying households worldwide, including more than 30 million in the United States and Canada, in violation of the company's terms of service.

As per Chengyi Long, Netflix's director of product innovation, "widespread account sharing between households undermines our long-term ability to invest in and improve our service".

It will cost Netflix subscribers in the five new markets ARS 219 (roughly Rs. 140) per home per month in Argentina and $2.99 (roughly Rs. 240) per home per month in the Dominican Republic, Honduras, El Salvador, and Guatemala to purchase an additional "home" for streaming access.

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Customers with the Basic plan may add one additional home; those with the Standard plan may buy up to two additional homes, and subscribers to the Premium tier may buy up to three additional homes.

Customers can add up to two Extra Member accounts for an additional $2-$3 (roughly Rs. 160 – Rs. 240) per month each in Netflix's tests in Chile, Costa Rica, and Peru.

Notably, rather than the actual walls of a home, Netflix's password-sharing policies apply to everyone in a customer's household. As an illustration, the company said paying customers can access Netflix while travelling.

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On its customer-support website, Netflix states that it may occasionally ask you to verify your device "if you are away from the Netflix household for an extended period of time."

The second quarter of 2022 results for Netflix is expected to be announced on Tuesday, July 19, following the market close. The streamer had previously predicted a net loss of 2 million subscribers worldwide, but some Wall Street analysts think the number will be lower in the second quarter thanks to the success of Stranger Things 4, as reported by Variety.

According to projections made by Wall Street firm Cowen, Netflix could increase its annual global revenue by $1.6 billion (roughly Rs. 12,800 crore) if it implemented password-sharing payment upgrade plans everywhere.

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