Netflix is testing out new charges for sharing passwords

By Blair Marnell March 16, 2022

If you’ve ever shared your Netflix password with anyone outside of your household, then there’s a high probability that Netflix knows about it. And while Netflix has yet to ban the practice, the streaming service is taking new steps to monetize it. Via Netflix’s official blog, Chengyi Long, the streaming service’s product innovation director, announced that the company is testing out plans to charge an extra fee to accounts that share their passwords.

For now, the options are only being tested in three countries: Costa Rica, Peru, and Chile. The good news is that the early version of the fee comes in at under $3 in all three countries. However, Netflix will evaluate the results before determining whether to raise the fee or if the practice will be brought to America.

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As part of the rollout, participating accounts will only be able to add subaccounts for two people who don’t live in the household. The upside is that each person on the subaccount will get their own profile, viewing history, and personalized options.

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“We recognize that people have many entertainment choices, so we want to ensure any new features are flexible and useful for members, whose subscriptions fund all our great TV and films,” wrote Long. “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.”

Long also stated that password sharing between households has impacted “our ability to invest in great new TV and films for our members.” Netflix currently has 222 million subscribers around the world, but it’s unclear how many households share accounts. If Netflix is able to successfully monetize this phenomenon, it could significantly increase its revenue.

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