Typically speaking, a lot of online services do not encourage or allow users to share online accounts. Netflix is one of those companies, but for the most part, the company has looked the other way for a long time, but that is changing soon as Netflix has started to test its password sharing plan over in parts of Latin America.
This is according to a report from Bloomberg where users living in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic will now need to pay extra to keep sharing their account. The company had actually started to test it in countries like Chile, Costa Rica, and Peru, but now it looks like it will be expanding to more markets where it will now cost users $3 extra.
As to why Netflix is suddenly implementing this new pricing plan, it is simple – the company has been losing money. While Netflix was on the rise, the company was willing to look the other way, but earlier this year in the first quarter of 2022, the company announced that for the first time in 10 years, they are losing subscribers.
By implementing an additional cost for password sharing, Netflix is probably hoping to offset the potential loss of customers. At the moment this pricing scheme is still in testing so for the rest of the world, there will not be any changes yet. The company had also previously stated that they are planning on launching a cheaper ad-supported plan to encourage more customers to subscribe to its services.