Popular video streaming company Netflix has decided on a new initiative to charge additional fees to users who share account passwords. In this regard, a test is being started in 5 Latin American countries in August, under which those who share passwords with others will be asked to pay a fee for each additional household.
The company expects this to generate additional revenue from Netflix account sharers. In Argentina, El Salvador, Guatemala, Honduras and the Dominican Republic, if a customer’s account is used for more than 2 weeks at different locations outside of their residence, the company will require additional fees to be paid.
The change will not affect users using Netflix on mobile devices such as smartphones, tablets or laptops, nor will it apply to users going out of town on vacation. Each customer will be charged an additional fee of $3 per additional home.
According to Netflix, more than 100 million households worldwide use accounts that other people pay for.
The company said that password sharing was the main reason for its subscriber decline.
It should be noted that during the first quarter of 2022, the company had to lose 2 lakh customers, while in the second quarter, this number is likely to reach 2 million.
According to a Netflix official, today account sharing is impacting our investment and ability to improve our service.
Earlier in March 2022, Netflix had similarly announced a campaign to stop password sharing.
At the time, the company said that if a user gave their account password to a friend or acquaintance for use, the account holder would be charged an additional fee.
Netflix said at the time that the additional fee option would be rolled out in the next few days and then those who share their account with others will have to pay the fee, or else their accounts will be closed.