Netflix tests fees to share passwords in five countries
etflix Inc. will ask customers in five Latin America countries to pay a fee if they want to use their account in an additional home, a test the company hopes will generate additional revenue by getting customers to pay to share their Netflix account.
Netflix has said that more than 100 million households are using accounts paid for by other people, and blamed password sharing as one of the primary reasons for its flagging subscriber growth. The company lost 200,000 customers in the first quarter, and forecast it would lose 2 million more in the second. Its share price has dropped more than 65% this year as investors fret that the streaming business is in trouble.
The company is testing ways to charge extra if people want to use the same Netflix account. In its first effort, the company has asked customers in Chile, Costa Rica and Peru to pay to an additional fee to add a member to an account. That new member sets up a sub-account with their own email address, gets their own stream and can use Netflix at the same time as the primary account holder within the limits of their plan.
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