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Netflix is ​​testing new methods to cost for password sharing

After confirming a big discount in subscriber rely earlier this yr, Netflix is ​​reportedly engaged on new methods to retain its subscribers and recuperate its income. One in every of these strategies is now being rolled out in Latin American international locations, as Netflix has began charging for sharing passwords there.

Netflix is ​​cracking down on password sharing

Again in April, Netflix blamed customers who share their passwords with family and friends for dropping greater than 200,000 subscribers over the previous quarter. In line with the corporate, at this time the platform has over 100 million customers who don’t pay for a Netflix subscription.

In a be aware to staff, Netflix mentioned its objective was to crack down on password sharing — and it is now turning into a actuality, no less than in some areas. as reported by bloomberg On Monday, Netflix is ​​now testing charging for password sharing in 5 completely different Latin American international locations: Argentina, El Salvador, Guatemala, Honduras and the Dominican Republic.

In these international locations, prospects at the moment are required to pay an extra price in the event that they use the account for greater than two weeks outdoors of their major residence. For now, the system makes use of the TV to determine a number of logins in several areas, as Netflix says customers will not need to pay further charges to observe Netflix on a smartphone, pill or pc.

The brand new price for sharing a Netflix account password is as much as $2.99 ​​(relying on the native foreign money). One of many firm’s administrators mentioned in a weblog submit that “widespread account sharing between households undermines our long-term capability to put money into and enhance our service.”

Netflix beforehand selected Latin America to roll out the brand new “function” as a result of password sharing has been “notably excessive” there. The corporate believes that letting customers pay for sharing their passwords is a greater answer than deleting these accounts.

In Chile, Costa Rica and Peru, Netflix was already testing an analogous technique for sharing passwords, however this strategy permits customers so as to add a brand new member to a Netflix account utilizing the private credentials related to the first account. prices a price.

9to5Mac’s Tech

Netflix is ​​testing new ways to charge for password sharing in Latin America

Whereas Netflix believes that password sharing is the primary motive the corporate is dropping subscribers and income, there are lots of different causes as effectively. One in every of them is certainly the value.

Netflix’s fundamental plan prices $9.99 per 30 days in america and solely permits streaming in 480p decision on a single system. The HD plan now prices $15.49 per 30 days, whereas the 4K plan with help for as much as 4 simultaneous gadgets prices $19.99 per 30 days. In international locations with devalued foreign money, these costs develop into even much less inexpensive.

Alternatively, Netflix opponents similar to Amazon Prime Video, Apple TV+, HBO Max and Disney+ have been on the rise in current months as a result of they’re much cheaper. Apple TV+ prices $4.99 per 30 days in america, with 4K content material and help for as much as 5 others on the identical account. Disney+ solely prices $7.99 per 30 days – that too with 4K content material and help for a number of gadgets.

There isn’t any phrase on when the password-sharing price will likely be expanded to different areas. In the meantime, Netflix is ​​additionally engaged on a less expensive, ad-supported plan. The one factor we all know for positive is that Netflix is ​​anxious after its share value dropped 65% this yr following adverse outcomes.

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