Netflix tests new way of charging users for password-sharing by letting them buy 'additional homes' for $2.99 per month

Netflix tests new way of charging users for password-sharing by letting them buy 'additional homes' for $2.99 per month
Netflix wants to crack down on password sharing.Netflix
  • Netflix is testing out ways to charge account holders for password-sharing in several Latin American countries.
  • It will let users in five countries pay monthly fees of $2.99 to "add a home" to their account.

Netflix is trying a new strategy in its attempt to find a way to make people pay for password-sharing.

The company announced Monday it is going to try a new of getting people to pay for sharing accounts in five new countries: Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras.

Netflix said it will add an option to "add a home" to an account, which will allow users to buy the right to watch Netflix in places other than the primary residence associated with the account for $2.99 per month.

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The company has already been testing out new rules on password-sharing in Costa Rica, Chile, and Peru. Rest of World reported in May the trial has been far from perfect, with enforcement posing a major issue.

In these countries Netflix tested charging users fees to let individual members outside their household view Netflix. Rest of World reported there was widespread confusion among consumers as to how Netflix defined a "household."


Netflix signaled its intention to crack down on password-sharing in April when it posted its first-ever subscriber loss.

It's not clear exactly when Netflix might enforce its crackdown on password-sharing globally. Chief Operating Officer Greg Peters said in the company's Q1 earnings call on March 31 he believes it will take about a year for Netflix to test out its ideas before rolling out the crackdown to global markets including the US.

Netflix is due to host its Q2 earnings call on Tuesday.