Back in the spring, Netflix announced that it would be rolling out a new “Extra Home Fee” for users who want to share their account with others. Netflix had been hesitant to enforce account-sharing policies and offer ad-supported tiers in the past, but the rout on its stock last February finally forced the streamer to take action.
And while this may be a shock to some (there have been plenty of shoutouts to Netflix about its new policy on Twitter), it’s a good thing that the streamer is resolving this issue.
So what does the new extra home fee mean to you? We dive in!
Password sharing with the extra home fee
Viewers can subscribe to different packages on Netflix. The most commonly purchased package includes four screens. However, to stream simultaneously on four screens you’ll need to fork up $19.99 a month, double the cost of a single account user license. Which is why many people share their account passwords with friends and family.
However, password sharing is about to come to end and viewers should anticipate a change in their monthly fees.
Here are Netflix’s newest monthly plans:
Extra home fee
| Plan | Price | Speed | # of Streams | Access |
| Basic w/Ads (avail. 11/3/2022) | $6.99 | 720 HD | 1 | Some titles not available |
| Basic | $9.99 | 720 HD | 1 | All Netflix content |
| Standard | $15.99 | High Quality HD | 2 | All Netflix content |
| Premium | $19.99 | 4K HD | 4 | All Netflix content |
Up until now, password sharing had not been a problem. Netflix has always been a company seeded in innovation, and as such, as gone out of their way to avoid overwhelming consumers with extra fees. However, given the pressure that has been put on its stock, Netflix no longer wants multiple users to use the same account. So if you’re using Netflix outside of your home or have simultaneous streams that don’t adhere to the plan you’ve subscribed too, you’ll need to add an additional $2.99 a month for each stream.
Whether it is a good thing or bad is debatable. But Netflix has rolled out this model so far in:
- Argentina
- Dominican Republic
- Honduras
- El Salvador
- Guatemala
Netflix has not specified if the cost would be the same for the U.S and other countries. We can wait until the update rolls out in 2023.
In the regions where the Extra Home Fee has been rolled out so far, Netflix members with a basic subscription can add up to one extra home. Standard plan holders can add two extra homes, and premium users up to 3 homes, which would put the maximum number of streams per account at seven, for a cost of around $30 per month.
Expected changes
Unfortunately, these changes may be a rude awakening for some users, but again, the stock has lost over 50% in the last year, so action was inevitable.
This also means viewers who borrow their friends’ Netflix passwords will have to create their own account or fork up the $2.99 to the account holder.
Summary
Netflix shareholders are not doubt elated that the streamer has taken corrective action to pick up the money it’s been leaving on the table, but viewers are divided. In any case, expect the cheaper ad-supported option to be a available this Friday (11/3/2022). Going forward, if you share your password and don’t want to pay more than $9.99 per month, you’ll need to switch to the ad-supported tier and add an extra home, which you can do in 2023.
For now, if you want to share your account, you’ll need to switch to the $15.99 plan.
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