Netflix is testing a new (and confusing) password sharing policy in three countries. Image: Robyn Beck (Getty Images)
Strange things have happened on Netflix, but its new password-sharing policy is confusing users during its pilot program in Costa Rica, Chile and Peru, according to Rest of the World.
What’s the new Netflix password sharing policy?
Netflix’s new password-sharing policy is simple: it affects users who share passwords at an additional charge. The streaming service defines a home as the immediate people with whom a specific subscriber lives. This means that you can share your password with your roommates, but not with your family member who lives across the country. For Netflix users who want to share their account with outsiders, they can add additional users for a fee. Business Insider reports that this rate is $ 2.99 per added person, while the rest of the world claims that the rate is just over $ 2. Netflix did not immediately respond to our request for clarification.
Netflix began testing this new policy in March, and according to the rest of the world, user reaction has been mostly negative after the point of sale spoke to a dozen subscribers across Peru. Some users have completely unsubscribed from Netflix, while others have continued to share their passwords without repercussions from the company. That said, Netflix confirmed to Rest of World that the policy is “progressive” and that it is testing different versions throughout Peru, Costa Rica and Chile.
Why is Netflix concerned about sharing passwords?
Netflix seems to have been in financial trouble lately. After announcing a loss of more than 200,000 subscribers in the first quarter of 2022 (the first time after a decade of growth), the streaming company said it was considering adding ads to generate more revenue. Netflix shares also fell 30%. The company partially blamed users who share passwords for their stock issues. Netflix also downsized its Tudum staff through layoffs last month after only a few months of working for the blog and eliminated upcoming projects before going into production.
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Netflix flew too close to the sun. Once a streaming-era monolith, Netflix seemed to promise more than it could offer, and now succumbs to the consequences of its own indulgence. Competition from streaming services like Hulu and HBO Max offers consumers a choice, something Netflix probably wasn’t too worried about when it monopolized the broadcast industry just a few years ago. The company’s Terms of Use already say that sharing passwords is not allowed beyond homes, but for now it seems that passwords in the United States can still be shared without fear of being fined.