Netflix testing new features to stop password sharing

Netflix announced Wednesday that it is testing new features to crack down on password sharing outside of your home.

While the Netflix terms of service say that an account “may not be shared with individuals beyond your household,” the company doesn’t currently enforce the policy. That’s changing with the introduction of an upcharge for sub-accounts — a test that the company is beginning in Chile, Costa Rica, and Peru.

“We’ve always made it easy for people who live together to share their Netflix account, with features like separate profiles and multiple streams in our Standard and Premium plans,” said Chengyi Long, director of product innovation, in a post on the company blog. “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.”

Long identified two new features to solve this issue: the ability for users to pay sub-accounts. Also, the option for existing profiles to be turned into their own accounts or sub-accounts.

You can add an additional member: Members on our Standard and Premium plans will be able to add sub accounts for up to two people they don’t live with – each with their own profile, personalized recommendations, login and password – at a lower price: 2,380 CLP in Chile, 2.99 USD in Costa Rica, and 7.9 PEN in Peru;

Transfer your profile to a new account: Our Premium, Standard and Basic plans allow members to share their profile information to either a new or extra member sub account. This allows them to keep the viewing history and My List as well as personalized recommendations.

The option will be available in three countries over the coming weeks. It’s currently unclear whether Netflix intends to expand these features beyond Costa Rica, Chile, and Peru. Users from these countries will be notified and might need to verify that they are logged in.

“We’ll be working to understand the utility of these two features for members in these three countries before making changes anywhere else in the world,” wrote Long.

Wednesday’s announcement comes on the heels of Netflix raising the price of a subscription in North America earlier this year, making all plans cost $1 to $2 more.