Why It's Too Soon to Worry About Netflix Charging Users to Share Passwords

Netflix is rolling out a plan to charge users for sharing passwords. Are you one of them? If so, here's why you don't need to worry about it yet.

Netflix has started testing a new way to help crack down on password sharing. The streaming platform is asking users in Chile, Costa Rica, and Peru to pay extra money to share Netflix outside their households.

Of course, Netflix knows if you share your password with others outside your household, and despite it hurting the company's bottom line, they're still letting it happen—for now.

However, the company is testing ways they can benefit from password sharing. Nevertheless, while Netflix charging extra to share passwords might sound alarming, you shouldn't worry about it. Here's why.

Netflix Asks Users to Pay More to Share Passwords

Netflix has announced plans to charge users who share their passwords between households an extra fee. In a blog post, Netflix's Chengyi Long, Director of Product Innovation, said, "we've been working on ways to enable members who share outside their household to do so easily and securely, while also paying a bit more."

According to Long, the extra charge will include two new features. First, members in the Standard and Premium plans will have the ability to add up to two sub-accounts. In addition to each sub-account having its profile, each will also have unique login details and personal recommendations.

Secondly, Netflix is also making it possible to transfer existing profile information like viewing history, My List, and personal recommendations to a new account or a sub-account. Perhaps, this is meant to lure some freeloaders to get their own Netflix accounts.

To enjoy the two new features, you will have to pay around $3 extra. While Netflix is available in over 100 countries and boasts over 220 million paying subscribers, the test is only launching in three South American countries: Chile, Costa Rica, and Peru.

Password sharing is massive, especially as far as entertainment services go, and Netflix is not an exception. Like other streaming services, password sharing is a significant issue for Netflix, and it's hurting the company's revenue. According to Long, password sharing impacts the company's "ability to invest in great new TV and films for our members."

Netflix has been looking into a way to tackle password sharing, and this is the first official move from the company to try and tackle the issue. This move is interesting because Netflix is not punishing those who share passwords. Instead, the company's approach is to guilt-trip freeloaders to pay for Netflix or, at the very least, get the attention of bill payers to add more cash for sharing passwords.

So if you share Netflix between households, expect to see a user-prompt asking you to pay more. And with the new features, the company's move provides a win-win situation for both the company and users. It's a friendly move that, hopefully, doesn't make you cancel your Netflix account.

Why You Shouldn't Worry About Sharing Your Netflix at the Moment

If you've been sharing your Netflix password outside your household, there's no need to worry about the company's move to monetize password sharing. First, this is only a test and is currently limited to just three countries. The test is the company's way of checking if the feature works. Depending on its effectiveness, Netflix will decide if these two features will expand to other regions or not.

Secondly, the extra fee is optional. As mentioned above, Netflix's approach doesn't punish those who share passwords. You will decide whether it's worth paying the additional expense of your own volition.

Should You Pay for Netflix's Extra Features?

Although the two extra features are only available in three countries, are they really worth paying for? Sure, paying extra for Netflix is the last thing you probably want to hear right now after the 2021 price hike. However, considering the utility of the features, it might be worth it if you care about the company's bottom line.