Netflix to apply extra fee for shared accounts. Details here

Netflix is planning to charge people for sharing accounts in order to look for new ways to make money after years of massive growth. The streaming giant said it would ask its subscribers to pay an extra $2.99 ( 238.7) per month to add a “second home” to their accounts.

However, the latest password-sharing payment plan of Netflix will be applicable in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras starting the following month. Anyone in each additional home will then be able to stream Netflix on any device at a price that is less expensive than full standalone membership.

It will cost Netflix subscribers in the five new markets 219 pesos ( 852.07) per home per month in Argentina and $2.99 per home per month in the Dominican Republic, Honduras, El Salvador, and Guatemala to purchase an additional “home” for streaming access.

Customers with the Basic plan may add one additional home; those with the Standard plan may buy up to two additional homes, and subscribers to the Premium tier may buy up to three additional homes.

Customers can add up to two Extra Member accounts for an additional $2-$3 per month each in Netflix’s tests in Chile, Costa Rica, and Peru.

Notably, rather than the actual walls of a home, Netflix’s password-sharing policies apply to everyone in a customer’s household.

However, Netflix warned the clampdown on password sharing will spread worldwide.

According to Netflix, users share their login information with more than 100 million non-paying households worldwide. In US and Canada alone more than 30 million share the Netflix password which is in violation of the company’s terms of service.

As per Chengyi Long, Netflix’s director of product innovation, “widespread account sharing between households undermines our long-term ability to invest in and improve our service”.

The latest announcement came ahead of Netflix’s Quarter 2 result. The streamer had previously predicted a net loss of 2 million subscribers worldwide, but some Wall Street analysts think the number will be lower in the second quarter thanks to the success of “Stranger Things 4”. As per the projections by market experts, Netflix could increase its annual global revenue by $1.6 billion if it implemented password-sharing payment upgrade plans everywhere.

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