Netflix tests charging some customers more for unauthorized password sharing

Netflix Inc. will start charging some customers more to share their accounts with people who aren’t in the same household in an effort to crack down on unauthorized password sharing.

Catherine Cohen attends the Catherine Cohen's Netflix Comedy Special "The Twist: She's Gorgeous" Release Party at Georgia Room on March 15, 2022 in New York City. (AFP)

Netflix Inc. will start charging some customers more to share their accounts with people who aren't in the same household in an effort to crack down on unauthorized password sharing.

The streaming giant is testing the feature in three markets: Chile, Costa Rica and Peru. Subscribers with premium and standard plans will be able to add up to two additional users in other locations, the company said Wednesday in a blog post. The additional fees will vary by country. Costa Ricans will pay $3 more per month.

Netflix is making it easy for subscribers to transition a new member to the plan, keeping in place their account profile, viewing history and personalized recommendations. It also means the company will more aggressively go after subscribers who share their logins with friends and family members outside their home.

Chengyi Long, Netflix's director of product innovation, said the company has tried to make it easier for people who live together to share accounts, with features such as separate profiles and the ability to view multiple shows at once. 

“While these have been hugely popular, they have also created some confusion about when and how Netflix can be shared,” Long said. “As a result, accounts are being shared between households -- impacting our ability to invest in great new TV and films for our members.”