On March 16, streaming giant Netflix announced that over the next few weeks, it would start to launch and test two new features. Netflix would charge its customers an additional fee for sharing accounts outside the household. Additionally, the users would be able to transfer the profiles in their account to a new account or sub-accounts. As of now, the features would be tested in three regions that are Chile, Costa Rica and Peru.
In a statement released by Netflix, the company said that over the years, they had made it easier for the customers to share the account credentials within the household. However, with multiple plans available that allowed customers to stream content on multiple screens simultaneously, the customers started to share the accounts outside households, which impacted the company’s ability to invest in new TV and films.
With the new feature, the customers would be allowed to share the account credentials outside the household by paying an additional fee. To make the transition easier, the additional profiles could be transferred to a new account or a sub-account that would make it possible for the customers to keep their viewing history, personalized recommendations etc., intact.
The price difference for sub-accounts
As of now, the new features are going to be launched in three regions that are Peru, Chile and Costa Rica. In Peru, Netflix plans vary from PEN 24.90 to PEN 44.90 a month. Under the new feature, PEN 7.9 in Peru will be charged from the customers for the additional profile(s). In the case of Chile, the plans vary from CLP 5,940 to CLP 10,700 a month. The customers will be asked to pay an additional CLP 2,380 in Chile for the additional profile(s). Lastly, in the case of Costa Rica, where the plans vary between USD 8.99 to USD 15.99 without tax, the customers will pay an additional fee of USD 2.99 for the profile(s) outside households.
Netflix ToU does not allow account sharing outside the household
It is notable that the Terms of Use of Netflix does not allow its customers to share credentials outside the household. It reads, “The Netflix service and any content accessed through the service are for your personal and non-commercial use only and may not be shared with individuals beyond your household.” The ToU is applicable to all customers irrespective of location. However, it is well-known that the credentials are shared between family and friends beyond households.
Furthermore, the new features are applicable only in the three regions specified by the company in the post on its website. The company said it would test the features extensively in these regions before applying them to other countries. Over the next few weeks, the company will prompt the users to verify and choose new plans if the account login from outside a household.
