Netflix new password-sharing crackdown is confusing test markets

• Netflix’s new pilot programme penalises customers who share passwords.
• Some customers have cancelled their Netflix subscriptions, while others have continued to share credentials.
• The company is testing alternative versions in Peru, Costa Rica, and Chile.

Netflix new test to prevent password sharing is confounding consumers, according to Rest of World.

Read more: Netflix may clamp down on password sharing. Here’s what that means

Netflix’s prototype password-sharing scheme.

Netflix’s new pilot programme penalises customers who exchange passwords. Streaming service defines a household as a subscriber’s immediate family. You can share your password with roommates, but not a distant relative. Netflix subscribers can add new members for a charge. Netflix’s charge is roughly $2 USD, although it varies per country, according to Gizmodo.

Rest of World spoke to a dozen Netflix customers in Peru and found poor user feedback to the new show. Some customers have cancelled their Netflix subscriptions, while others have continued to disclose their credentials. Netflix told Rest of World that it is testing alternative versions in Peru, Costa Rica, and Chile.

Netflix fears password sharing.

Netflix is having financial issues. After losing over 200,000 customers in Q1 2022 (after a decade of growth), the streaming provider considered adding advertising to earn more cash. Netflix fell 30%. Users exchanging passwords contributed to the company’s stock difficulties. Netflix laid off Tudum personnel last month after only a few months, and cancelled forthcoming projects.

Read more: Even Culture Secretary Nadine Dorries shares her Netflix password

Netflix overheated. Netflix once promised more than it could deliver, and it’s now suffering the repercussions. Netflix wasn’t worried about competition from Hulu and HBO Max when it dominated the streaming sector a few years ago. The company’s Terms of Use specify password sharing across homes isn’t allowed, but for now, U.S. passwords can still be shared without a punishment.