Netflix is testing a new way to manage password sharing in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic (as first reported by Bloomberg). The support page of Netflix in Honduras clearly states that the test will cause users to pay an additional fee if they use the account on a TV or TV-connected device in a place outside their original home for more than two weeks. Each additional home will cost an additional 219 pesos per month, per home in Argentina ($1.17 US), and $2.99 elsewhere.
According to Netflix, in testing areas, subscribers’ accounts have one primary “home” where they can access Netflix on any device in the home, as well as travel and use Netflix on laptops and mobile devices elsewhere without additional steps. This trial allows users to purchase additional “houses,” which they choose to add or skip to use the service on a TV screen.
The support page explains the process:
Starting August 22, 2022, when you sign up for Netflix on a TV outside of your home, you’ll see the option to add another home for extra monthly income.
If you only use this TV for a short period of time, you can watch Netflix for up to two weeks without additional charges as long as your account has not been used in that area. After that time, the TV will be turned off unless you add another room.
The support pages also go into more detail about how Netflix sets up a “home,” which is defined as “a physical place — like your home — where you can use your Netflix on any of your devices.”
Further down the page, it explains what Netflix does to see usage at a different “home”.
We use information such as IP addresses, user IDs, and account activity.
If you are using a device within your included household and still see a message that says too many households are using your account, you can:
Make sure the device is connected to the same internet as the other devices in the house.
Make sure the device is not connected to a VPN, proxy, or any unblocker service.
Netflix explains that your use of Netflix on a TV outside your home “while traveling” is eligible for a free two-week extension, “as long as your account has never been used in that area. This is allowed once per year.”
In these countries, Netflix is also working on a feature that will allow you to monitor where your account is being used and restrict access. If you are on the First Plan, you can add one room, if you are on the Standard plan, you can add up to two, and on Premium, you can add up to three.
“It’s great that our members love Netflix movies and TV so much that they want to share more,” Chengyi Long, Netflix’s director of new products, said in a statement. “But today’s widespread account sharing among families affects our long-term ability to invest in and improve our service.”
This adds to Netflix’s existing test that pushes subscribers in Costa Rica, Peru, and Colombia to pay more for users who live outside their homes. Netflix is currently charging users an additional 2,380 CLP ($2.52 USD) in Chile, $2.99 USD in Costa Rica, and 7.9 PEN ($2.02 USD) in Peru to add two additional “accounts” to an existing account. The company also began experimenting with a design transfer tool that should make it easier for someone to transfer their recommendations, browsing history, and My List. This is the platform’s way of bypassing password sharers to open a new account or access a subaccount.
In May, a report from Worldwide showed confusion among applicants who are part of the exam in Peru. Some subscribers were said to be unsure of Netflix’s definition of “home,” while others were able to get around the prompt intended to confirm account ownership.
Netflix first announced it would be testing ways to charge for password sharing in March, just weeks after it announced a price increase for US customers. Netflix is also working on an ad-supported subscription option and, last week, said it will partner with Microsoft to strengthen its advertising. The company has clear reasons for finding new ways to make money; in April, after the first registration of the pandemic, it announced in April that it had lost subscribers for the first time in more than a decade. The company’s next quarterly earnings report will be released on Tuesday afternoon.
Update July 18, 7:30PM ET: Added more information from Netflix’s Support pages about how the options work, are visible to users who sign in on a TV or TV-connected device, how Netflix defines “home,” and information on what Netflix is. tracks where and how subscribers are using the service.
Disclosure: The Verge recently developed a series with Netflix.
