Netflix introduces new password-sharing payment plan in five countries
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OTT platform Netflix is trying a new method to convert freeloaders into paying members. The new feature allows users who don't own an account to legitimately access content by paying an additional monthly fee.
The American subscription streaming service claims that its users share login information with over 100 million non-paying viewers. The company has been introducing stricter rules to prevent this practice. The new feature will allow subscribers to enable access from a second home for a fee that is less than full membership.
The new feature will be introduced in Argentina, the Dominican Republic, El Salvador, Guatemala, and Honduras, reported Bloomberg.
Subscribers with a basic plan can add one additional home and people with the standard plan can add two additional homes. Those paying for the Premium plan can buy up to three additional homes. In Argentina, one additional home will cost roughly Rs 140 and the rate is around Rs 240 in the Dominican Republic, Honduras, El Salvador, and Guatemala.
Earlier, Netflix introduced another feature called "add extra member" in Chile, Costa Rica, and Peru. This allows users to share their Netflix accounts with people outside their households for a monthly fee. Adding two extra member accounts costs, roughly Rs 160-240 in Chile, Costa Rica, and Peru.
Netflix alleges that over 30 million subscribers in the US and Canada share their login information with non-paying users against the company's terms of service. Chengyi Long, Netflix's director of product innovation, alleged that this practice undermines the company's long-term ability to invest in and improve the service.
Many have criticised the new plans as it is unclear how Netflix defines a household. And many users prefer to share their accounts and subscription fee with their friends.
According to its customer-support website, Netflix claims that paying customers can access Netflix while travelling. If you are away from the Netflix household for an extended period, the app may occasionally ask you to verify your device.
The streaming platform has already lost a large part of its customer base. The company has predicted a net loss of 2 million subscribers worldwide in the second quarter of 2022. Wall Street firm Cowen has predicted that Netflix can increase its annual global revenue by roughly Rs. 12,800 crores if the password-sharing payment plans are implemented everywhere.
