Netflix has announced that it will charge password-sharing fees in five other countries as the streaming giant continues to crack down on the practice.
The news broke today (July 22) that Netflix has asked customers in five other countries (Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic) to pay an extra fee if they share their passwords with viewers outside their homes. Additional fees vary by country, but users can expect to pay a maximum of $2.99.
by IGNThe additional costs do not affect the use of the mobile streaming service. This step will come after the launch of Netflix. Function “add additional member” To Chile, Peru and Costa Rica in March.
The entertainment service has been trying to restrict password sharing for some time. In 2019, Netflix said it plans to introduce new rules for sharing passwords, but it will do so in a “consumer-friendly way”.
In 2021, Netflix introduced a verification system in some countries where shows began with a warning: “If you don’t live with the owner of this account, you will need your own account to continue watching.”
A study published earlier this year estimated that at least 27 percent of the 14.9 million Netflix subscribers in the UK at the time shared their accounts with other members of their family. The study also found that “at least” 17 million subscribers share passwords in Netflix’s five largest markets in Europe: the UK, Germany, Spain, France and Italy.
Netflix CEO Reed Hastings said in a statement in April that the company was “working on how to monetize the exchange.” “Remember, over 100 million families have already decided to watch Netflix,” Hastings said. “They love the service. We just have to pay for them to a certain extent.”
Earlier this week, Netflix reported a loss of 970,000 subscribers in the second quarter of 2022. Although the streaming giant initially estimated an expected loss of 2 million subscribers, the decline is due to 200,000 subscribers in the first quarter of the year.
Despite Netflix’s planned password changes, they expect a growth of 1 million subscribers between July 1 and September 30. within.
In January, Netflix raised subscription prices for US users as the company faces increased competition from the likes of Disney+, HBO Max and Apple TV+.