To curb account sharing and encourage users to pay for their logins, Netflix has launched new account-sharing rules that will initially roll out in select countries.
The company estimates that around 100 million households are currently sharing their accounts, hurting its ability to invest in new programming.
The new rules will allow users to pay an additional fee to share their account with people outside of their household. The company has stated that this new feature will initially be available in Canada, New Zealand, Portugal, and Spain but could eventually be rolled out to all 100 million households.
“We’ve always made it easy for people who live together to share their Netflix account with features like profiles and multiple streams,” the company said in a recent blog post. “While these have been hugely popular, they’ve also created confusion about when and how you can share Netflix.”
Today, standard and premium subscribers in Canada, Spain, New Zealand, and Portugal can set up an additional account for up to two people they don’t live with for an extra monthly fee, which varies by country.
Netflix has also said it will allow users sharing accounts to transfer their viewing history and other preferences to a new, paid subscription.
Although the company has not specified what actions it will take if subscribers continue to share accounts outside of their household, co-CEO Greg Peters stated in a recent conference call with investors that the company intends to be gradual and thoughtful in its rollout.
With over 231 million paid subscribers in 190 countries, Netflix is one of the most extensive streaming services in the world. By introducing these new account-sharing rules, the company hopes to encourage users to pay for their logins, which will, in turn, help it to invest in new programming and continue to grow.