In March 2022, Netflix announced they were charging extra if Netflix users shared their accounts outside of their homes. They said that although they noticed the growth accelerated by the pandemic, it has impacted the way they created content. And they said they would test this new feature in Peru, Costa Rica, and Chile. It may seem like a good idea for Netflix to get more money from users. However, users from the countries above aren’t exactly pleased with what’s happening. Let’s look at the Netflix password sharing crackdown and its effects.
Why Choose These Countries?
Rest of World, a nonprofit journalism organization, published a paper in June 2022 about the current situation regarding the Netflix password sharing crackdown update. They found that the Latin American countries generated lower revenue than other countries, and it was an opportunity for Netflix to test it on them. Plus, they suggest that the streaming giant is testing it in these countries because they don’t want to lose subscribers in larger markets.
Netflix has a policy of not allowing people to share their Netflix accounts. However, with this common occurrence, they made it clear with the new feature that a household is defined as people living under the same roof. People who share their Netflix passwords violate the terms of use.
To curb that, users can add paying accounts outside of their homes. In Peru, for example, the cost of a new profile costs around $2 (8 soles). And it’s a more affordable option than opening a new one.
Rest of World also talked to Peruvian Netflix users regarding this new feature, and they’re not pleased with the inconsistencies that Netflix has enforced regarding the password sharing crackdown. Here’s what these users had to say about their experiences.
Peruvian Users on the Netflix Password Sharing Crackdown
- Carlos Luque – He was not notified of the new policy and has not been charged for the extra accounts outside his household.
- Gabriela A – She shares her Netflix account with her friends, calling it her “pirate account,” and would like to keep it. Her friends received the notifications, but they did not pay it any mind. So far, she’s paying the same rate.
- Kat Galindo – She decided to cancel her account and subscribe to one of Netflix’s rivals, HBO Max. Galindo shares that she no longer likes the content on Netflix.
- Hugo Vilchez – Similar to Galindo, he also stopped subscribing to Netflix, and he’s sharing his other streaming accounts with friends.
Rest of World also reached out to a Netflix customer service representative, saying they were confused about the new policy changes. The anonymous representative said that if anyone asked regarding the new policy, they could use the account without any extra charges through a verification code.
Other Possible Netflix Features
Password sharing isn’t the only feature that Netflix wants to release on its platform. The New York Times (NYT) finds that Netflix MAY introduce ads on the streaming platform. The service started streaming in 2007. Since then, it hasn’t shown any advertisements on the platform. NYT revealed there was a note regarding the potential new addition to the platform, and that feature will be included in the final months of 2022.
This announcement comes after other streaming services had revealed they had plans to add advertising to their streaming platforms. In 2015, Reed Hastings, co-founder and co-CEO of Netflix was adamant that Netflix won’t introduce ads. But seven years later, it appears he’s considering the idea. And they plan on figuring it out in the next few years.
Advertisements aren’t the only feature they want to add to their platform. Live streaming is another thing they’re considering. Deadline reported that they might use live streaming for unscripted shows and comedy specials.
