Technology
Netflix cracks down on password-sharing
Apparently, the era of sharing Netflix password may be coming to an end.
Apparently, the era of sharing Netflix password may be coming to an end as number of quarterly subscription cancellations in the United States (US) grows and the company’s revenue is being effected by password-sharing as well.
Netflix Inc is testing features including one that will allow accounts to be shared outside members' household at an extra cost, the streaming pioneer said on Wednesday.
The streaming giant is testing the features in Chile, Costa Rica and Peru allowing members on its standard and premium plans to add up to two people.
The company is also studying another feature that will allow its users on a basic, standard or premium plan to transfer their profile information to a new account or a sub account retaining data such as viewing history and personalized recommendations.
The company currently allows people who live together to share their Netflix account.
Over the next few weeks, Netflix will begin testing what’s loosely described as ‘sub accounts’ but officially called “Extra Member” for existing accounts across Chile, Costa Rica, and Peru.
However, the plans have created some confusion about when and how accounts can be shared, the company said, adding it is impacting its ability to invest in new content.
The company said it would test the features for their utility before making changes in other parts of the world.
Netflix has never really enforced password-sharing, though it has confirmed that it will wait to see how the test run goes in these three countries before making any changes to other markets, to see whether this change would raise revenue and/or its subscriber count.