Netflix’s plan to put an end to password sharing is afoot. The streaming giant is testing a new charging scheme that’s meant to address the sharing of passwords outside their main households. Its currently running in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic.
In these test areas, account holders will be asked to pay an additional fee whenever it’s detected that their accounts are being used outside their primary household for more than two weeks. An additional $2.99 per month will be charged for each additional home (in Argentina, the charge is ARS 219).
Netflix defines a home as a physical location – like your house – where users can use a Netflix account on any device. The number of devices that can use an account at the same time will still be followed for each plan. In the new charging scheme, subscribers can nominate one primary “home” where Netflix can be accessed without issue and charge additional fees for every other home the account is used in.
Users can also use Netflix if they’re traveling outside their homes for up to 2 weeks as long as the account has not been previously used in that location. This is allowed once per location per year.
Netflix plans will also have provisions for extra homes an account can be used on. Users can add 1 extra home on the Basic plan, up to 2 extra homes on the Standard plan, and up to 3 extra homes on the Premium plan.
According to Netflix, they use information such as IP addresses, device IDs, and account activity to detect if an account is being used outside the primary home.
Password sharing is something Netflix is adamant on monetizing to address its current financial woes. They estimate that more than 100 million households globally are sharing passwords. And while they have largely ignored it in the past, the company’s recent struggles have caused them to reconsider.