Netflix is testing new ways to end password sharing

Netflix has announced to crack down on password-sharing between friends and test ways to prompt them to pay an extra fee. 

Netflix has announced to raise its prices just a few weeks back. 

The Director of Product Innovation Netflix Chengyi Long, in a blog post, said that “While these have been hugely popular, they have also created some confusion about when and how Netflix can be shared. As a result, accounts are being shared between households — impacting our ability to invest in great new TV and films for our members.”

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The OTT platform is set to try its new technique, in a test phase, in three countries including China, Costa Rica and Peru. Netflix will provide the ability to transfer viewing profiles into new accounts, and will also prompt users to add an extra viewer to their package by paying some extra money. The price for adding an extra viewer is expected to be 2,380 CLP in Chile, $2.99 in Costa Rica and 7.9 PEN in Peru.

It’s not the company’s first attempt to curb the widely practised password sharing. The company had experimented with an account verification tool to keep unauthorized users from using others’ accounts.

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However, the company seems to have a change in approach towards the problem. By providing the  “add an extra member” and “transfer profile” features, Netflix is thinking strategically about how it can keep growing as the company’s subscriber numbers continue to plateau.