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

Netflix’s new pilot program penalizes customers who exchange passwords. The streaming service defines a household as the immediate family of a subscriber. You can share your password with roommates, but not with a distant relative. Netflix subscribers can add new members for a fee. Netflix’s charge is approximately $2 USD, though it varies by country, according to Gizmodo.

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

Netflix is ​​having financial problems. After losing more than 200,000 customers in the first quarter of 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 trading difficulties. Netflix laid off Tudum’s staff last month after only a few months and canceled upcoming projects.

Netflix overheated. Netflix once promised more than it could deliver, and now it’s suffering the repercussions. Netflix wasn’t worried about competition from Hulu and HBO Max when it dominated the streaming space a few years ago. The company’s Terms of Use specify that sharing passwords between households isn’t allowed, but for now, US passwords can still be shared without penalty.