Netflix freeloaders will now be forced to sign up for their own account as the streaming giant will start rolling out a feature that will prompt subscribers to pay extra if they are sharing the service with someone outside of their household.
Netflix's New Profile Transfer Feature
The new Netflix feature will allow households to add a maximum of 2 sub-accounts for a fee that is less than the cost of the full-price service. The new feature will first roll out in Chile, Peru, and Costa Rica, and the other markets will follow in the next few weeks.
The streaming giant did not say when the feature will be available to global subscribers, according to TechCrunch.
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Once it is launched, the Standard and Premium subscribers in the three countries stated will be offered the option to add sub accounts to their service for people who are not a part of their household.
Each sub account will have its own profile and personalized recommendations too. However, what makes the feature different is that the sub account will also have their own login and password.
Also, if they choose to create their own Netflix service under their own name and billing information, their viewing history, their own list, and their personalized recommendations will transfer over, according to The Verge.
How the Feature Works
Netflix will not rely on location-based data to operate the feature. Instead, the streaming service will use the information that it has to give to its end users including their IP address, device IDs and other information about devices linked to the Netflix account across the household. Using this information, Netflix can detect where the sharing takes place outside a household.
As for the sub accounts, the main account owner will get an email with a code that they will need to use to verify the additional devices that are a part of the household.
The cost for the non-household members will be $2.98 in Chile, $2.99 in Costa Rica, and $2.12 in Peru. This is more affordable than a full Netflix subscription, according to Mashable.
Netflix added that the extra members won't be paying for their account separately as the bill still goes to the main account holder.
For years, Netflix had turned a blind eye to the common practice of users sharing their Netflix accounts with people outside their household.
In fact, Netflix's former CEO Reed Hastings had once described account-sharing as a positive thing as it represented a chance for new people to discover what the streaming service had to offer.
But now, Netflix does not have much to prove to the public, because several of its shows have become global entertainment sensations and are winning awards left and right.
Meanwhile, the real challenge is keeping its subscribers and enticing new once in the face of increased competition. The streamer's year-end quarter was not as expected, as it showed the company's lowest subscriber growth in years.
Creating an avenue for extra members to move along the path to becoming full subscribers through the new feature could help increase Netflix's paying user base.
In March 2021, Netflix users said that a "Star Your Own Account" message would pop-up when they enter their password on a shared account.
Also, Netflix refused South Korea's internet fee demand, which shows that the streaming service is thinking of investing more on its content as it tries to pull in more subscribers.
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Written by Sophie Webster