Netflix intends to tighten down on customers who share passwords.

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Netflix has unveiled a series of new policies that would penalise customers who share passwords with persons who do not reside in the same household.

Chengyi Long, Netflix's head of Product Innovation, stated in a blog post on Wednesday that the new procedures are a reaction to "confusion over when and how Netflix may be shared."

The most significant anti-password sharing feature is "Add an Extra Member," which allows customers on Standard and Premium subscriptions to add sub accounts for up to two persons they do not reside with.

While the additional members are available at a "discounted pricing," it is still an additional expense on top of the membership price, which Netflix just increased to new highs.

In the next months, Netflix will test the new "Add an Extra Member" option in Chile, Costa Rica, and Peru. In Chile, the new members will cost 2,380 CLP, $2.99 in Costa Rica, and 7.9 PEN in Peru.

In addition, Netflix is introducing a new feature that will make it easier to remove other people from your account. It's called "Move Profile to a New Account," and it lets customers who share passwords transfer profile information — like viewing history and tailored suggestions — to an Extra Member sub account or a brand new subscription.

"We know that individuals have numerous entertainment options, so we want to make any new features flexible and helpful for members, whose subscriptions pay all of our excellent TV and films," Netflix explained. "Before implementing improvements anyplace else in the globe, we'll try to determine the usability of these two features for members in these three nations."

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