Netflix is fighting password sharing in Latin America by charging for additional ‘homes’

Netflix has rolled out a new way for five Latin American countries to share accounts — and with it, a new way to curb password sharing. Beginning August 22, users in Argentina, the Dominican Republic, El Salvador, Guatemala and Honduras will have to pay for additional “houses” if they want to access the streaming service away from their primary residence for more than just a short vacation.

Subscribers can watch Netflix anytime and as often as they want on their phones or tablets, even when they’re traveling or visiting another location. However, if they want to stream on a TV, they can only access Netflix for two weeks at no additional cost if they are away from their primary residence. Also, they can only stream once for free in a given location. After those two weeks are up, or if they return to a location where they previously exhausted free access to the service, Netflix will ask if they’d like to add a home for an additional fee per month.

Basic tier subscribers can add one additional home, Standard up to two additional, and Premium up to three additional. Netflix says it uses information like IP addresses, device IDs, and account activity to recognize homes, but it advises people to make sure their devices are using the same internet connection and not using VPN or proxy services in case the system insists the viewer is located outside of his or her primary residence when it is not. The company will also allow members to stop paying for an extra home whenever they want and replace their extra home up to three times every six months.

Earlier this year, Netflix said it lost about 200,000 subscribers in the first quarter of 2022 due to stiffer competition and an abundance of shared accounts. Corresponding Bloomberg, password sharing is particularly prevalent in Latin America, so the company is likely testing new features there to prevent the behavior. In its announcement, Netflix said the service will cost users 219 pesos per month per household in Argentina and $3 per month per household in the Dominican Republic, Honduras. El Salvador and Guatemala.

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