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Netflix just expanded its password-sharing crackdown — here’s what you need to know

Netflix on TV with remote control in foreground
(Image credit: Shutterstock)

It’s no secret that Netflix wants to crack down on password sharing. The company has already kicked off a trial system in a handful of countries, and it seems the crackdown might actually be working. Now the streamer has revealed that this testing will be expanding to more countries, and has revealed how the whole process is supposed to work.

The crackdown takes the form of a new feature called “add extra member” in some countries or “add a home” in others. This test is already live in Chile, Costa Rica and Peru, and starting next month it’ll go live in Argentina, Dominican Republic, El Salvador and Honduras. 

According to Netflix the idea is that each account is associated with a single home. If you want to start adding more homes, you’ll be prompted to pay an extra $3 a month. This is how Netflix is reacting to a user exodus, as Netflix just lost nearly 1 million subscribers.

Netflix also confirmed that travel is involved, so users will continue to be able to stream when you’re not actually at home — provided you use a laptop or mobile device. Which is where the complications are likely to arise. Because how does Netflix differentiate between someone traveling away from home and genuine account sharing?

According to a support page for the Honduras test, Netflix determines your home base with various bits of information including “IP addresses, device IDs, and account activity.” If Netflix detects that you are watching on a TV away from home, it’ll prompt you to pay the extra $3 a month. If you don’t, or you're away from home for a genuine reason, you’ll only be able to watch Netflix there for two weeks.

Netflix also confirms that a “home” is a single physical location, though that’s an overly simplistic explanation if you ask us. Families aren’t always that nuclear, even when you discount the figurative families like the main cast of the Fast and Furious movies.

Some kids split time between parents, and as we head into the fall other kids will be returning to college. They’re still part of their parents’ households, even if they’re not physically there all 52 weeks of the year.

But push people hard enough and they might just end up canceling their accounts entirely. It already happened in initial testing, for a multitude of reasons. It’s hard to imagine people were happy about the service trying to charge more for something it once encouraged

Charging for account sharing is definitely one of the latter decisions, because there’s no actual benefit to the subscriber. It may be restricted to a few Central and South American countries for the time being, but it certainly looks like Netflix is looking to expand further. The only question is when, and how many people are willing to kick up a fuss when it happens.

Tom Pritchard
UK Phones Editor

Tom is the Tom's Guide's UK Phones Editor, tackling the latest smartphone news and vocally expressing his opinions about upcoming features or changes. It's long way from his days as editor of Gizmodo UK, when pretty much everything was on the table. He’s usually found trying to squeeze another giant Lego set onto the shelf, draining very large cups of coffee, or complaining about how terrible his Smart TV is.