Netflix Tests ‘Add Home’ Subscription Option For Households That Share Accounts

It might soon be time to say goodbye to sharing passwords and subscription fees as Netflix is piloting a feature that limits subscribers to a certain household.

The feature is devised as yet another way to curb users’ habit of sharing passwords. In participating regions, the platform will now charge an additional US$2.99 to each extra household that is being added to the main account. Basic members can add one extra home, while Standard and Premium members can add two and three extra homes, respectively.

You may be wondering how the system would know who has the password. Well, Netflix intends to utilize IP addresses, device IDs, and other information about devices signed into its network to help determine where accounts are being logged in from.

The option to travel and watch on the go is still available, however. Subscribers will also be able to remove houses and control where their account is being used from their settings.

By next month, the trial will first be rolled out to Argentina, Honduras, the Dominican Republic, El Salvador, and Guatemala. Netflix has a year-long plan where it is aiming to experiment with different pay structures to determine the right balance for charging users who share passwords.

In March, it tried out an ‘add extra member’ feature in Chile, Costa Rica, and Peru. While it is not looking to completely ban people from sharing passwords, it is not going to make it easy.

In a press release, Chengyi Long, director of product innovation, mentioned that the rampant password sharing has undermined Netflix’s efforts to deliver quality services. Netflix’s shares have dropped in recent times leading to an investment with Microsoft to bring a cheaper ad-supported tier to its business model.

[via TechCrunch and Bloomberg, cover image via Netflix]