Netflix Cracks Down On Password Sharing By Testing 'Add A Home' Fee

It's no secret that Netflix wants to put a lid on password sharing, despite CEO Reed Hastings once proclaiming that the company loves "people sharing Netflix, whether they're two people on a couch or 10 people on a couch." The latest anti-sharing move from Netflix is a new "Add a home" feature that is currently being tested in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic.

As part of the test, Netflix subscribers will have the option to pay $2.99 to add an extra home where someone can enjoy the streaming platform's content without having to create a new account. The most affordable Basic plan will allow adding one extra home, the Standard plan takes the number of additional homes to two, while the Premium facilitates a total of 3 extra homes. Ever since Netflix started hinting about its impending clampdown on password sharing, the company has made it clear that a Netflix account must be shared only by people living in the same household.

In fact, the streaming giant started a test in March of 2022 that would allow users to add a sub-account to the main account that would cost fewer dollars than paying for a standalone account. Each sub-account would have its own Netflix profile, complete with tailored recommendations, watch history, and even its own log-in credentials. That test — which first went live in Chile, Costa Rica, and Peru — also charged a sum of $2.99 for adding a sub-account.

Folks in the test circle that go ahead and add a new home to their Netflix account will have the facility to watch content on the go, accessing the content library from mobile devices like tablets and phones. The idea here is that they won't be limited to accessing Netflix from their home only. To recall, Netflix also started testing a prompt system in 2021 that would ask viewers to verify their email address or phone number to make sure that they were members of the same household that was paying for the subscription.

Moreover, Netflix says the new "Add a home" system will also let users remove homes linked to their accounts whenever they want. However, Netflix assures that the test won't be expanded to other markets before properly understanding the consumer sentiment around it. A similar sentiment was echoed by Hastings about password sharing back in 2021 when he told a reporter that the company "would never roll something out that feels like turning the screws" on account sharing.

However, Netflix is scrambling to streamline its revenue channels to make up for its ambitious content production plans. Netflix has already admitted that password-sharing was hampering its "ability to invest in great new TV and films." Aside from making plans to make moochers pay for its services, the company is also exploring a cheaper ad-supported tier and recently inked a deal with Microsoft to bring those plans to fruition.