Netflix’s test of cracking down on password sharing has reportedly confused some users, according to a report from Rest of the world† The streaming service began experimenting with password-sharing solutions in Peru, Chile and Costa Rica in March, forcing subscribers in these markets to pay an additional fee to enable streaming for others outside their household using the same account.
When speaking to more than a dozen Netflix subscribers in Peru, Rest of the world found that most users were not formally notified of the policy change via an email or notification sent by Netflix — less than two months after Netflix’s initial announcement. The outlet also found that Netflix’s enforcement level varied from user to user, with some users on shared accounts reporting ignoring validation prompts without any fine to the account owner. Another user told Rest of the world that they never heard of a policy change and continued to share their account without any issues.
There’s also confusion around Netflix’s definition of a “household” (as some may consider their immediate family members to be part of the household), and it seems Netflix is aware of that ambiguity. An anonymous customer service representative in Peru reportedly said: Rest of the world that she was asked to provide verification codes to subscribers calling about someone in their household using their account from another location. This allows members outside of a subscriber’s home to continue using the shared account for free.
“While we started working on paid sharing over 18 months ago, we’ve been clear for five years that ‘A Netflix account is for people who live together in one household’,'” Netflix spokesperson Kumiko Hidaka said in an emailed statement: The edge† “The millions of members actively sharing an account in these countries have been notified by email, but given the importance of this change, we are ramping up in-product notifications. We are pleased with the response so far.”
The cost for an additional account is less than signing up for a separate new account (making it more like a deal, and less of a way for Netflix to get some more subscriber growth). Netflix charges an additional 2,380 CLP ($2.89 USD) in Chile, 2.99 USD in Costa Rica and 7.9 PEN ($2.13 USD) in Peru to add up to two users who are outside an account holder’s household .
A crackdown on password sharing was imminent after Netflix reported in its most recent revenue report that it was losing subscribers for the first time in more than a decade, though it still has 74.58 million subscribers in the US and Canada and 222 million. worldwide. The company will go through quite a few shifts as it tries to find new subscribers – and struggles to keep the subscribers in the face of growing competition. Netflix executives are said to have told employees the company will introduce a cheaper ad-supported plan within the year, offering a cheaper way to stay in the fold after long-term subscribers have seen near-year price increases. It is also exploring live streaming in an effort to compete with the ever-expanding Disney Plus.