Netflix has been against password sharing for a long time and it may finally bring an end to it soon. The popular streaming platform is testing a fee for password sharing in five Latin American countries.
Netflix hopes to generate extra revenue by having customers pay to use a single account in multiple homes. The update is only being tested in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic at the moment. Customers in these counties will be asked to pay an extra fee if they use their account outside their usual location for over two weeks.
The change will not affect users on mobile devices such as smartphones, tablets, or laptops, and nor is it applicable to people on vacation. The additional cost for password sharing will be $1.7 in Argentina and $2.99 in other countries.
According to Netflix, more than 100 million people are using Netflix accounts they did not pay for and it is the primary reason behind the streaming platform’s sluggish growth. The streaming service lost 200,000 subscribers in the first quarter and it is projected to lose 2 million more in the second.
The company’s share price is down more than 65% as investors fret that the platform is in trouble.
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