The popular video streaming service Netflix said in an announcement this Wednesday that it will be launching and testing two new features that result in an extra charge for those that are sharing accounts between households in Chile, Costa Rica, and Peru.
“Add an Extra Member: Members on our Standard and Premium plans will be able 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;
Transfer Profile to a New Account: Members on our Basic, Standard, and Premium plans can enable people who share their account to transfer profile information either to a new account or an Extra Member sub account – keeping the viewing history, My List, and personalized recommendations.”
The decision to crack down on password sharing is a significant opportunity for Netflix but may leave customers with a sour taste and a reason to cancel their membership.
If you’re interested in hearing more about the subscription marketplace and recurring payments, we recently published a report on this $830 billion market.
Overview by Ben Danner, Research Analyst at Mercator Advisory Group