Netflix to charge some users in Latin America more for sharing their passwords
Netflix launched over a decade ago, and it’s one of the most popular TV streaming services out there. It has evolved and attempted to adapt to the changing times — through different strategies and offerings. What started as a DVD rental platform now has its own catalogue of original content, which it offers digitally. Recently, though, Netflix started losing subscribers for the first time in over ten years. That could be due to various factors — such as viewers losing interest in the content it’s producing, competitors launching their own rivaling services, etc. Netflix partially blames password sharing for this decline in subscriber count. Since then, it has been coming up with new strategies to combat this depression.
Over the last 15 years, we’ve worked hard to build a streaming service that’s easy to use, including for people who travel or live together. It’s great that our members love Netflix movies and TV shows so much they want to share them more broadly. But today’s widespread account sharing between households undermines our long term ability to invest in and improve our service.
In its latest attempt to increase its revenue stream, Netflix will start charging select users more for sharing their passwords. Starting next month, subscribers in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras will have to pay an additional $2.99 per month to add a new household. The number of houses a user can add to their account varies — depending on the plan they’re paying for.
Earlier this year, the company tested an add an extra member paid feature in Chile, Costa Rica, and Peru. This addition is quite similar — as it pushes users to pay more when sharing their account passwords with friends. Those who aren’t willing to pay the additional sharing fee can simply ask their friends to migrate to independent, paid accounts. It’s yet to be seen whether this strategy will increase Netflix’s revenue or tempt users to resort to piracy instead.
Would this additional fee push you to cancel your Netflix subscription? Let us know in the comments section below.