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Netflix is testing out a new fee structure that will allow subscribers to add up to two additional users outside of their households, the company said Wednesday.
The feature is first rolling out in Chile, Costa Rica and Peru and will cost 2,380 CLP ($2.99) in Costa Rica and 7.9 PEN in Peru for primary account holders to create new profiles — with their own login, passwords and personalized recommendations — to the main account.
Last year, Netflix said it would begin cracking down on password sharing by prompting users to verify their identities or credentials to continue using their accounts, though the feature was given a limited rollout and has not been made permanent as of yet.
“We recognize that people have many entertainment choices, so we want to ensure any new features are flexible and useful for members, whose subscriptions fund all our great TV and films,” Chengyi Long, Netflix’s director of product innovation, said in a blog post announcing the update. “We’ll be working to understand the utility of these two features for members in these three countries before making changes anywhere else in the world.”
Netflix had a lackluster end to 2021, missing subscriber expectations with 222 million paying customers. At the time, executives said in a shareholder letter that “added competition” from other streamers “may be affecting [Netflix’s] marginal growth some,” though the company pointed to growth in regions where other competitors have launched. As domestic subscriber additions have stalled, Netflix has focused internationally, noting in January that 90 percent of its paid subscriber adds have come from outside of the U.S./Canada.
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