Report: Netflix’s plan to charge for password sharing failed

Netflix’s chaotic plan to charge consumers for sharing their passwords outside of their homes has reportedly been in trouble as the streaming giant is testing the policy in several Latin American countries.

The new policy is an attempt to generate more revenue from consumers by crashing many people who use the same subscription to stream movies and TV shows.

But the presentation in Peru, where the policy was reviewed, was chaotic, according to global tech news site Rest of the World:

For some, the price increase is enough to convince them to close their Netflix account immediately. Others continue to share accounts between households without any notice of the policy change, or simply ignore the new rule without sanction. Overall, the lack of clarity on how Netflix defines “household” and the different fees charged to different customers has caused confusion among subscribers and possibly prompted consumer regulators to take action.

Neflix’s policy also angered a Peruvian consumer protection agency:

Confusion among customers has also raised concerns from consumer protection agencies. In mid-May, representatives from the national consumer agencies of Chile, Costa Rica and Peru met with Netflix to voice their concerns. In a press release, the Peruvian agency recommended that Netflix create clearer channels of communication about its customer policy, suggesting that the change would lead to more consumer complaints if it didn’t define “household” more clearly.

Peru’s consumer protection agency, the National Institute for Free Competition and Protection of Intellectual Property (Indecopi), said in a written statement to the Rest of the World that the various allegations could be viewed as an arbitrary form of discrimination. against users. While the agency did not state that it is currently under investigation, it added that this would be determined through an investigation. Netflix representatives in Other Parts of the World said that subscribers can waive additional fees if they choose not to share their accounts outside of their family.

Netflix struggles to generate more revenue amid sharp downturn. The streaming giant’s first-quarter report showed a staggering 200,000 lost subscribers, followed by hedge fund dumps and massive layoffs.

Shares of Netflix fell 68% year-on-year in mid-May, with estimates that it could lose another two million subscribers in the coming months.

Allum Bohari is senior technical correspondent for Breitbart News. He is the author of #DELETED: Big Tech’s War to Delete the Trump Movement and Steal the Election. follow him Twitter @LibertarianBlue.