Netflix tests a new formula against the use of shared accounts: charge more to use the service in another household

Netflix wants the 100 million users who share its account to pay more. The question is how. The company’s latest idea is being tested in Argentina, El Salvador, Guatemala, Honduras and the Dominican Republic, and involves asking customers to pay a monthly extra if they use their account outside their main home for more than two weeks. The additional monthly price for adding a home depends on the region: 219 pesos (1.66 euros) in Argentina and 2.99 dollars (2.92 euros) in the other four territories.

As reported by Netflix, from this week in the countries where the test is being carried out, the service includes access for a single household. “A home is a physical place where members choose to watch Netflix on any of their devices,” explains the company. The client will be able to watch Netflix in their home as well as on their laptop and mobile device while traveling, but when the system detects that the account is being used elsewhere for more than two weeks, it will ask if they want to add that household for an extra cost. .

Starting August 22, 2022, when you sign in to Netflix on a TV outside of your home, you’ll see the option to add an extra home for an additional cost per month. “If you’ll only be using this TV for a limited time, you can watch Netflix for up to 2 weeks at no additional charge, as long as your account hasn’t been previously used in that location. After that period, the TV will be locked, unless you add the extra home.

Basic plan users can add one extra household, Standard users can add up to two households, and Premium users can add up to three households. How does Netflix detect households? The company will use information such as IP, device ID and account activity. In case the service is being used in a location included in the account and the message that the account is being used in too many places still appears, it is recommended to check that you are not connected to a VPN, a proxy or another service unlock.

This new test should not be confused with the one Netflix has been holding since May in Chile, Costa Rica and Peru. In these territories, the company allows you to add subaccounts for members with whom you do not live. Regardless of the territories and the type of test, the purpose of all these initiatives is the same: to charge a monthly extra for sharing the account. It remains to be seen what the impact of these measures will be when one or more of them are extended to the United States or Europe.

“We love that our members enjoy Netflix movies and series so much that they want to share them with others,” says Chengyi Long, Director of Product Innovation. “Currently, however, the widespread practice of sharing accounts between different households affects our long-term ability to invest in and improve our service.”