Netflix Rolling Out ‘Extra Home’ Fee to Crack Down on Account Sharing

by Suzanne Halliburton

Netflix really will start cracking down on moochers. If you’re sharing an account with folks who live outside your home, you’ll pay an extra fee.

So, ask yourself, is sharing your Netflix deets with your best friend, niece, former roommate or ex-partner really worth it? Or, do you even know how many people know your password so they can watch Virgin River or Stranger Things?

Netflix will roll out a trial program starting next month. Users will pay an extra home fee of up to $3. The fees start in these countries on Aug. 22 — Argentina, the Dominican Republic, El Salvador, Guatemala and Honduras. Netflix wrote on its site in Honduras: “If your Netflix account is being used on a TV outside of your home, you will need to pay an extra $2.99 per month for each extra home. You will only be charged when you or someone who uses your account chooses to add an extra home—this fee will NOT be automatically charged.”

Then after the rollout, the streamer will add the fee worldwide. And how much you pay depends on your subscription plan. In the United States, you can add up to three extra homes to your plan. Prices range from $9.99 to $19.99. Consequence TV reported that if you’re traveling, you can still use your Netflix account without having to pay an extra fee, so long as you haven’t watched from that location before. But, if the extra home fee isn’t paid, Netflix will block the TV or streaming device.

Netflix Made the Move to Stop Bleeding Subscribers

Why is Netflix doing this? The streamer is bleeding subscribers. In the second quarter, Netflix lost 1.3 million subscribers combined in the United States and Canada. And the subscriber numbers in Europe, the Middle East and Africa dropped by 770,000. Asia was good to the company, adding 1 million new customers. The numbers stayed the same in Latin American countries.

Overall, Netflix boasts 73.3 million subscribers in the United States and Canada. The worldwide total is 220.7 million. The company projects to add another 1 million by the end of the third quarter. The company believes the extra home fee will create new subscribers. If a customer deletes someone, that means that someone can subscribe on their own. Plus, Netflix believes it will generate new business with a cheaper subscription plan. This plan will be supported by ads. And the available catalog won’t be as large.

The cheaper plan probably will debut early next year.

Meanwhile, the streamer is adding several well-known movies to its catalog for August. They include the Men in Black trilogy, the Spider-Man movies, Space JamUnchartedMiss Congeniality, and Ferris Bueller’s Day Off.