Netflix tests charging a fee to those sharing accounts

SAN FRANCISCO

Netflix on March 16 said it is testing charging a fee to subscribers who share their accounts with people who don’t live in their homes.

The U.S.-based streaming service has long taken a relaxed approach to users sharing passwords with family or friends, but recently saw stock dive on quarterly results that showed cooling subscriber growth.

Competition in the streaming television market meanwhile has been ramping up, particularly from Disney+, with the cost of producing coveted original shows climbing as well.

In the coming weeks, Netflix will begin offering subscribers in Chile, Costa Rica and Peru the option to add as many as two people to “sub-accounts” at a monthly fee of $2 to $3, Netflix product innovation director Chengyi Long explained.

“We recognize that people have many entertainment choices, so we want to ensure any new features are flexible and useful for members, whose subscriptions fund all our great TV and films,” Long said in a blog post.

The Silicon Valley streaming titan has been working on ways for subscribers to share “outside their household... while also paying a bit more,” she said.

Netflix said it will allow people already sharing accounts to transfer profile and viewing history information to new sub-accounts. Long said the company will study the utility of the new model in the three countries before making changes anywhere else.

Netflix ended last year with 221.8 million subscribers, just below target, after booming during coronavirus lockdowns that kept people at home and on the platform.

Things are not looking better for the first quarter of 2022 as the firm expected to add only 2.5 million subscribers.