Netflix tests charging extra for the best part of Netflix
Get ready for some hard conversations.
On Wednesday, Netflix announced an upcoming test which is sure to cause drama amongst the account-sharing set. The streaming service said that, over the next several weeks, it will begin prompting some people who share accounts outside of their immediate household to pay extra to continue doing so.
"Members on our Standard and Premium plans will be able to add sub 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," read the announcement in part.
Notably, the sub-account test is for now limited to subscribers in Chile, Costa Rica, and Peru. That doesn't necessarily mean that it will remain there. When pressed, Netflix would not provide specifics on any plans to expand the test beyond those three countries. Netflix would also not confirm how many users live in the countries subject to this test.
"[Accounts] are being shared between households," noted Netflix's Wednesday announcement, "impacting our ability to invest in great new TV and films for our members."
According to the streaming giant, the additional sub accounts will be priced at 2,380 CLP in Chile, 2.99 USD in Costa Rica, and 7.9 PEN in Peru. Netflix also said it will test out a new profile transfer feature, which will allow users to move their entire profiles — think recommendations and viewing histories — to new paid Netflix accounts. (Picture breaking up with a romantic partner, and taking your piece of the Netflix account with you.)
The mostly unregulated practice of account sharing has, up until this point, practically defined Netflix and its streaming competitors. Any challenge to that is sure to put fear in the hearts of users — as it did March of 2021 when Netflix forced some users to verify they had ownership over an account.
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Importantly, Netflix's Terms of Use clearly state that the "Netflix service and any content accessed through our service [...] may not be shared with individuals beyond your household." In other words, Wednesday's announcement merely represents Netflix enforcing its existing terms.
That may come as a surprise to some users, though. That's because what, exactly, constitutes a household in the eyes of streaming services is often rather nebulous. Netflix confirmed that it defines a household as people living together at the same property — no ex-roommates, far-off siblings, or best friends need apply.
Like we said, get ready for some hard conversations.