Netflix pays for account sharing. It is common to see cases of sharing OTT accounts with friends and acquaintances with other people who do not live in the same household.
Netflix announced through its newsroom on the 16th that it is piloting a feature that charges an additional fee for account sharing in some countries in Latin America, such as Chile, Peru and Costa Rica, for a few weeks.
According to the new policy, standard and premium plans that allow simultaneous access are the target of this trial operation. Up to two additional people who are not members of the same household can be connected to one account, and users who share the account are provided with a personalized profile, password, and personalized recommendations. The price is set at 2380 pesos in Chile, $2.99 in Costa Rica, and 7.9 soles in Peru. For example, if a person using a premium plan in Chile pays an additional 2,380 pesos, it means that two additional people can connect and use one account for up to six people.
This is analyzed as a result of complicated concerns that Netflix is facing, such as account sharing, profitability improvement, and stagnant net subscriber growth.
Based on the terms of use, Netflix stipulates that Netflix services must not be shared with individuals other than household members. It is argued that sharing your Netflix account with someone other than your family is a violation of the Terms of Use. However, in practice, there are many cases in which users share their accounts with third parties using the multi-access function provided by OTT companies including Netflix. Netflix previously implemented an account sharing restriction policy last year.
However, it is still unclear whether Netflix will extend its account sharing restriction policy to other countries such as Korea. An official from Netflix Service Korea said that the function was decided based on a long review of multiple profiles, and that the test will be conducted in three countries, and that the test in other countries has not been decided at this time.
A notice on paying for account sharing other than household members published by Netflix on the 16th. Netflix newsroom capture.
