For a while now, Netflix accounts have been shared amongst multiple people. The passwords and access of one account are quite commonly shared between friends and family, even with the streaming site’s basic plan. However, Netflix plans on changing that as it faces increased competition and pinpoints password-sharing as one of the key reasons.
In an official blog post, Netflix elaborated that it will begin testing the new model in Chile, Costa Rica, and Peru. The statement reads:
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. While these have been hugely popular, they have also created some confusion about when and how Netflix can be shared.
Netflix further elaborated that even though it allows password sharing in a single household, it does not appreciate the usage of the same account between multiple households. The streaming service also highlighted that this has adversely impacted its revenue generation and ultimately, its ability to invest in original content.
Netflix further added:
As a result, accounts are being shared between households – impacting our ability to invest in great new TV and films for our members. So for the last year, we’ve been working on ways to enable members who share outside their household to do so easily and securely, while also paying a bit more.
To combat the issue, Netflix will start rolling out ‘sub-accounts’ or ‘Extra Member’ profiles for subscribers in the three countries. The feature will allow account holders to add two more members, for an extra monthly fee per member, to the account. The company stated:
Members on our Standard and Premium plans will be able to add sub-accounts for up to two people they do not live with – each with their 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.
Each new member would receive their username and password. While Netflix will also allow existing profiles to be imported to the other account or an existing sub-account. This will allow the user to retain their watch history, favorites, and personalized recommendations. The company elaborated:
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.
It plans on first testing out the feature in three countries and will closely observe how it goes. Netflix will then roll out changes and other features to other global markets and monitor how this change will impact revenue and subscriber count.
Article 4.2 of Netflix’s terms and conditions, last updated 2nd November 2021, 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.
Up until a few days ago, Netflix had never tried to enforce password-sharing, while a company executive only slightly addressed the topic during the Q3 2019 earnings call.
