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Netflix Testing Password Sharing for Extra Fee in Latin America

Netflix Testing Password Sharing for Extra Fee in Latin America

Netflix continues its work on cracking down on password sharing between households and is currently testing an added fee for Netflix users in Latin America that are sharing their login info with folks who live outside of their household. An estimated 222 million paying households are sharing with an additional 100 million households that are not being monetized.

Bloomberg reports that Netflix customers who share their passwords in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic will need to pay additional money.

Netflix has already been testing an add-on fee for account sharing in Chile, Costa Rica, and Peru, but the test is now expanding to additional countries. In Argentina, customers will need to pay 219 pesos ($1.70), while the fee will be $2.99 in other countries.

While Netflix’s terms of service do not allow for multi-household account sharing, the streaming service has in the past looked the other way when it came to password sharing. However, as the company has been losing money as of late, it is apparently no longer willing to allow the practice to continue.

Netflix lost subscribers during the first quarter of 2022, marking the first time in 10 years the streamer has lost subscribers. As subscriber losses are expected to continue, Netflix is looking for ways to stop the bleeding. In addition to account sharing, the streamer is also working on a more affordable ad-supported streaming tier.

Customers located in countries where Netflix is testing the additional sharing fees will have the option to pay the fee or move to a new, paid account. While Netflix will still allow users to access their accounts while traveling. However, if a person uses the service in a location outside of their household for more than two weeks, the company will send an in-app notification prompting them to add a household for a fee or to change their primary household.