Bad news for Netflix: as the Rest of the World has explained, it plans to prevent password sharing are driving users of its pilot program crazy, which has already been launched so far in Costa Rica, Chile, and Peru.

What is this pilot program about?

How Netflix’s new pilot program to control password sharing works is simple: users who share their passwords with other people will receive an extra charge. The streaming service only allows sharing the password with people who live in the same household as the owner of the subscription. That means that you can share your password with your roommates but not with your relative who lives in another part of the country. If you want to share your Netflix account with other people who do not live in your house, you can create new users by paying a little extra. A Netflix spokesperson explained to us that this fee is around $2, although it varies slightly from country to country.
Netflix began testing this new show in March, and according to Rest of World, user reaction has been mostly negative. Some users decided to cancel their Netflix subscription altogether after seeing their quota increase, while others have continued to share their passwords as before without receiving any additional charges from the company. That said, Netflix confirmed to the rest of the world that this test is being done “progressively” and that it was testing different versions in Peru, Costa Rica, and Chile.

Why is Netflix so concerned with account sharing?

It seems like Netflix is running into some financial trouble lately. After announcing the loss of more than 200,000 subscribers in the first quarter of 2022 (the first time this has happened after a decade of growth), Netflix said it was considering adding ads to get more revenue. Netflix shares also fell 30%. The company blamed users for sharing their passwords in part. Netflix also cut its staff last month and cut several projects before starting production.
Everything indicates that Netflix has died a bit of success. Once at the top of the streaming service pyramid, Netflix seemed to promise more than it could deliver, and now it’s suffering the consequences. Competition with streaming services like HBO Max and Prime Video is giving consumers new options and exciting catalogs, something Netflix probably wasn’t that keen on improving when it monopolized the streaming industry just a few years ago. At the moment, his idea to end shared passwords has been a fiasco, it will be necessary to see if the company changes tactics or finally gives up.