Netflix Inc. is taking steps to reduce unauthorized password sharing in its largest market, the U.S. The video-streaming giant announced an $8 monthly charge for those who share their accounts with friends and family outside their household.
Netflix said that an account is meant to be shared in one household and anyone else must have a separate paid account or be added as a paid “extra member”. To share Netflix with users outside of their household, current customers can transfer a profile to a new membership that someone else pays for, or they can buy an extra membership for $7.99 per month in addition the cost of the main subscription.
Netflix will also start blocking devices that attempt to access a Netflix account without properly paying. Subscribers will be able to continue to access the service while traveling, by using personal devices or by logging onto a TV at a hotel.
During its most recent earnings call, Netflix co-Chief Executive Greg Peters described the reaction of users in countries where the company has already cracked down on password sharing. “It’s very much like a price increase — we see an initial cancel reaction,” he said.
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