Netflix to run tests on charging users for sharing subscriptions outside of households
Streaming giant's new features will be launched and tested in Chile, Costa Rica, and Peru
Netflix is rolling out a test to limit password sharing in parts of Chile, Costa Rica, and Peru.
The company announced on Wednesday the launch of new features to clear up some "confusion" over accounts being shared.
"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. As a result, accounts are being shared between households - impacting our ability to invest in great new TV and films for our members," the statement on its website states.
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The streaming company said it's been working over the last year to "enable members who share outside their household to do so easily and securely, while also paying a bit more."
Two new features will be launched in Chile, Costa Rica, and Peru, the company confirmed.
The first is the ability to add an extra member. Those with standard and premium plans will be able to add "sub accounts" for up to two people they do not live with, the statement explains. These additional sub accounts will allow users to have their "own profile, personalized recommendations, login and password" at a lower price. The prices are 2,380 CLP in Chile, 2.99 USD in Costa Rica, and 7.9 PEN in Peru.
The second feature is the transfer of a profile to a new account.
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"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," the company's statement explains.
It continues: "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. 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."
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The move comes as the streaming giant has become more popular than ever, surpassing 200 million subscribers.
Meanwhile, in January, the streaming service giant announced the price hike on Jan. 14, raising monthly subscriptions by $1 to $2 per month in the U.S. and Canada. The standard plan rose from $13.99 to $15.49 stateside and from 14.99 CAD to 16.49 CAD north of the border.
The 4K, or premium, plan will now cost $19.99 per month. The price of the basic plan will remain at $9.99.