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Netflix fights password-sharing with test of $3 “Extra Member” fee

Woman relaxing on the couch and holding a TV remote control while watching videos on demand.

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Netflix will soon charge an extra fee for sharing accounts with people in other households in the company’s latest attempt to reduce the password-sharing that has been common among Netflix users for years. The fee will roll out in Chile, Costa Rica, and Peru “over the next few weeks” and potentially go worldwide at a later date.

“Members on our Standard and Premium plans will be able in order 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, ” Netflix said in an announcement yesterday. Based on current conversion rates, 2, 380 CLP is about $2. 98 USD plus 7. 9 PEN is about $2. 12 USD.

The new fee will be paired with the ability for users to transfer profile information including their viewing history and watchlist to a new account or an Extra Member account. After rolling out the fee and profile transfers in Chile, Costa Rica, in addition to Peru, Netflix will “be working to understand the utility associated with these two features for members in these three countries before making changes anywhere else within the world, ” the company} said.

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