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Netflix tests new way to tackle password sharing

Netflix is testing a new way to tackle the issue of password sharing, prompting users to pay for additional ‘Home’ addresses.

As reported by Bloomberg, the tests are taking place in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic.

Over on the Honduran Netflix website, we learn that as of July 18 (that was yesterday), a Netflix account will be attributed one ‘home’. This is described as a single physical location “where you can use your Netflix on any of your devices”. The precise number of devices depends on the individual plan.

From August 22, it will be possible add further homes to your account in the aforementioned test regions. At this point, Netflix will will ask customers if they want to add a home for an additional fee per month. Netflix stresses that this new password sharing fee will not be automatically added.

Scanning down to the small print, it seems Netflix will detect the use of additional homes through IP addresses, device IDs, and account activity. You might get the message if your device isn’t connecting to the same internet connection as the other devices in your home, or if Netflix detects that you’re using a VPN to mask your address.

Each additional home will cost 219 pesos per month, which works out to around £1.40.

What about using Netflix during your holidays or whilst traveling, you ask? The streaming giant stipulates that “you can watch Netflix on a TV outside your home for up to 2 weeks as long as your account has not been previously used in that location,” and can be used once per location per year.

This new measure comes in addition to trials being conducted in the same region for charging additional users living outside the household.

It’s unsurprising to learn that Netflix is stepping up its efforts to claw back some of those password sharer pennies, with the company reporting its first major loss in subscribers for the first quarter of 2022.

The company has also recently revealed that it is partnering with Microsoft on a future ad-funded tier following sizeable and frequent price rises.

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