Netflix tests price increases for password sharers

Netflix will begin running tests to crack down on subscribers who share their passwords with users outside their household.

The company said that over the next few weeks, it will launch and test two new features for its members in Chile, Costa Rica and Peru. Members on Netflix’s Standard and Premium plans in those markets will be prompted to add subscriber accounts for up to two people they don’t live with—each with their own profile, personalized recommendations, login and password—at a lower price: 2,380 CLP in Chile, 2.99 USD in Costa Rica and 7.9 PEN in Peru.

The company will also prompt members on its Basic, Standard and Premium plans who share their accounts to transfer profile information either to a new account or an Extra Member subscriber account, which will allow users to keep their viewing history, My List and personalized recommendations.

“We’ve always made it easy for people who live together to share their Netflix account, with features like separate profiles and multiple streams in our Standard and Premium plans. While these have been hugely popular, they have also created some confusion about when and how Netflix can be shared. As a result, accounts are being shared between households - impacting our ability to invest in great new TV and films for our members,” wrote Chengyi Long, director of product innovation at Netflix, in a blog post.

Netflix said it will “work on understanding the utility” of the new features before making changes anywhere else in the world.

Last year, GammaWire spotted tests for alerts for users that may be using someone else’s password. A screenshot reads “If you don’t live with the owner of this account, you need your own account to keep watching.” The alert then prompts users to request a verification code via email or text message. Users can also choose to verify later. The report surmises that the tests are still fairly limited.

Variety confirmed the tests with Netflix.