Netflix announced on Tuesday that it will be charging subscribers an additional $7.99 a month to share their account with a viewer who lives outside the subscriber’s household.
The streaming giant is working to mitigate password sharing, which the company sees as out of control. Netflix also stands to gain more subscribers with the new initiative. The company wants to limit viewers for each account to those who live in the same household.
Subscribers who want to be a part of Netflix's standard or premium plans will pay $15.50 to $20 per month, depending on features, and will be permitted to allow others living outside their households to use their password for the extra $7.99 per month.
Netflix calls it a $2 discount off of the standard stand-alone basic plan.
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The company said subscribers will be able to stream Netflix content "on the go and when you travel — either on your personal devices or a TV at a hotel or vacation home."
It wasn't clear how the company plans to validate locations or identities for account holders.
Netflix also offers a way to check which devices are signed into a customer's account. Subscribers have the option to "sign out" of devices that should not have access.
Subscribers can also consider changing their passwords.
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