A few weeks after announcing the latest price increase, Netflix announced that it is cracking down on the widespread practice of sharing passwords between people who don’t live in the same home by requiring them to pay extra fees for the privilege.
In a blog post, the Director of Product Innovation said: ‘Although it was hugely popular, it also caused some confusion about when and how to share Netflix. As a result, accounts are shared between families, affecting our ability to invest in great new TV shows and movies for our members.
During the testing period, Netflix is trying its approach in three countries, namely Chile, Costa Rica and Peru. Subscribers there get prompts to add additional scenes to their package at a discounted price.
It is reported that this is not the first time that the service has tried to impose restrictions on password sharing. Last year, the company experimented with an account verification tool to prevent unauthorized users from taking over other people’s accounts.
This allows users to keep their viewing history, My List, and Recommendations when they complete the transfer to a new account.
The company first introduced user profiles in 2013. The feature was a way to split your viewing history between friends and family using a single account.
And the company last year launched a test in an effort to reduce password sharing. The test required users to verify account ownership in order to gain access to their account.
This new test appears to be a way for the company to get scalpers to buy their own subscriptions. It also aims to force account holders to pay for anyone who uses the service outside their homes.