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Netflix Litmus Test: It will start charging extra for shared US accounts.

Netflix has started these tests in Peru, Chile and Costa Rica. | Fountain: Photo by DCL “650” on Unsplash

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Netflix is about to embark on one of its toughest challenges as it cracks down on generic accounts in one of its largest markets: USA.

The company sent a letter to its shareholders saying that they plan to introduce additional payments for accounts outside the home in North America in the second quarter of this year.

Key moment

In your message Netflix is proud to have extended this measure to Canada, New Zealand, Portugal and Spain at the beginning of the year.

The tool allows the holders of the main accounts to pay an additional monthly fee for the provision of their services. Netflix up to two people outside of your family.

In general, if the user does not want to pay such an amount, it is possible to transfer the entire profile to a new account with full payment.

“Report on Netflix it is intended for household sharing (people who live in the same location as the account holder),” the company said in a statement on its support page. “People who are not at home will need to log into their account to view Netflix”.

Threats and weaknesses

In past, Netflix It is estimated that over 100 million non-paying households access its services through free shared accounts.

The company says this practice limits its ability to invest in new content. You also know that a decision to restrict account sharing may result in termination.

The expansion of paid account sharing occurs on the same day as Netflix said it would end its DVD rental business after 25 years in September.

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Source: RPP

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