Netflix to test password crackdown via payment for extra members – Variety (NASDAQ:NFLX)

Netflix (NFLX +2.4%) is readying a test of a method to crack down on password-sharing on its accounts, Variety reports – addressing a concern the company had previously largely dismissed.

The streamer’s terms of service don’t permit sharing a password outside of a household, though noncompliant password sharing happens to some degree on every streaming service.

Netflix’s previous efforts involved a gentle further prompt for users to enter their account credentials. Now a test launching in three countries (Chile, Costa Rica and Peru) will permit users who share account outside their household to do so by paying a bit more – less than the cost of a separate Netflix plan.

For example, in Costa Rica Netflix charges $8.99/month for its Basic plan, $12.99/month for Standard and $15.99/month for Premium. An “Extra Member” offering would cost another $2.99/month – but allow the addition of sub-accounts for up to two people outside a user’s household.

It’s also testing the ability to let its users transfer profiles to new accounts – an incentive for freeloaders to move a well-developed profile to a new paying account.

On Tuesday, Netflix announced it was developing five new titles based on the works of Dr. Seuss.