One of the main reasons Netflix believes it’s losing money is that people are sharing their accounts with multiple people. This does make sense on some level. For one payment every month, scores of people can watch content on the platform.
Netflix will charge a fee for sharing your password between households
So, in order to change things around, Netflix has a new idea. The company was trying out some experimental ways of reducing password sharing in Latin American countries. The company tried several methods at the same time, and it landed on one. As it stands, you can only have one house per account. However, you “Add a home” on your account so that an additional person can use your account if they live in a different house. If you’re sharing your password, Netflix will charge a fee every month. That fee translates to about $2.99/month. If you want to add additional homes to your account, you can do so. You’ll just need to pay $2.99 for each home you add. Right now, Netflix is still testing this out in certain countries, so you shouldn’t have to worry just yet. The company is testing this fee in Guatemala, Dominican Republic, Argentina, Honduras, and El Salvador. People in those countries will, undoubtedly, be upset. This will especially go for people who are sharing their accounts across a handful of households. It’s no doubt that Netflix anticipated this. This new policy will prompt some things to happen. First, people using someone else’s account will be forced to pay for their own account. Second, account holders who can pay the extra money every month will pay it. Third, people will unsubscribe from Netflix altogether. We’ll have to wait in order to see if this new policy will help turn Netflix’s fortunes around. We don’t know how the platform’s numbers are right now, but we might see some change in future quarters.
