Netflix shocked the world this week by saying it plans to finally tackle the rampant practice of password sharing.
More than 100 million households use a shared password, Netflix said Tuesday, including 30 million in the US and Canada.
But the video streamer isn’t planning to simply freeze those shared accounts. Instead, the company is likely to favor an additional fee for accounts used by multiple people outside the household.
Netflix’s plan to capture that lost revenue would start with sending an alert to account holders whose passwords are being used by other households.
The company has already started a test of this function in Peru, Costa Rica and Chile. For accounts that share a password between addresses, Netflix charges an additional fee to add “sub-accounts” for up to two people outside the household. The price is different depending on the country: around $2.13 per month in Peru, $2.99 in Costa Rica, and $2.92 in Chile, based on current exchange rates.
The company also allows people who use a shared password to transfer their personalized profile information to a new account or a subaccount, allowing them to keep their viewing history and recommendations.
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