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Netflix Implements Account Sharing Charges in the US

In the US, Netflix is progressing with its proposal to charge for account sharing. They warn American customers that sharing an account with viewers outside the home will cost an extra $8 per month.

Like other countries, the Standard plan allows adding one extra member, while the Premium tier allows adding two. Existing profiles can be converted into paying additional member accounts.

Following a trial in Latin America, Netflix introduced account sharing in Canada, Portugal, New Zealand, and Spain earlier this year. Viewers are still able to watch from outside their houses. Still, they must manually set household limits via a smart TV app or automatically based on IP addresses, device IDs, and practices.

Netflix claims it doesn’t have precise location information but may request device verification when traveling or using a different connection.

Netflix has been transparent about the motivation behind this initiative. The company has attributed some of its financial challenges to users sharing passwords for free access to Netflix.

By implementing paid sharing, Netflix aims to convert some of these users into paying customers, even though it may also risk losing them to competitors like Amazon and Disney.

This approach has faced some criticism as it could inconvenience college students who previously relied on family accounts for watching content in dorms.

Additionally, while $8 per month may be relatively inexpensive for a streaming service, some viewers might cancel their Netflix subscription altogether. However, it seems unlikely that Netflix will reverse its decision.

The fact that the company expressed satisfaction with the outcomes of the February launch indicates that paid sharing will stay.