Netflix plans on modifying that as it faces increased competition and pinpoints password-sharing as one of the key reasons.
According to the details, Netflix elaborated that it will begin testing the new model in Chile, Costa Rica, and Peru. The statement reads:
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.
Netflix further elaborated that even though it allows password sharing in a single household, it does not appreciate the usage of the same account between multiple households. The streaming service also highlighted that this has adversely impacted its revenue generation and ultimately, its ability to invest in original content.
As a result, accounts are being shared between households – impacting our ability to invest in great new TV and films for our members. So for the last year, we’ve been working on ways to enable members who share outside their household to do so easily and securely, while also paying a bit more.
In the three countries, Netflix will begin rolling out sub-accounts’ or ‘Extra Member’ profiles for subscribers. Account-holders will be able to add two more members to their account for an additional monthly cost per member. The company stated:
Members on our Standard and Premium plans will be able to add sub-accounts for up to two people they do not live with – each with their 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.
A username and password would be assigned to each new member. Existing profiles can also be imported to the other account or a sub-account, according to Netflix. The user’s watch history, favorites, and personalized suggestions will all be saved as a result. The company elaborated:
Members on our Basic, Standard, and Premium plans can enable people who share their account to transfer profile information either to a new account or an Extra Member sub-account – keeping the viewing history, My List, and personalized recommendations.
However, It plans on first testing out the feature in three countries and will closely observe how it goes. Netflix will then roll out changes and other features to other global markets and monitor how this change will impact revenue and subscriber count.