Netflix Account Sharing: Chaotic Conditions in Peru?

Netflix Account Sharing: Chaotic Conditions in Peru?

Peru is one of Netflix’s test markets, where additional fees are being used to combat account sharing. Peruvian Netflix users have to pay the equivalent of almost 2 euros in addition to the monthly subscription fees if they are noticed by sharing the account. But the experiences on site are probably not overwhelming, as the magazine “Rest Of The World” reports.

According to Ampere Analysis, why Netflix is ​​even testing in Central and South America is that there is particularly little revenue per viewer. But the markets there are said to be quite sensitive to price changes, since people earn less income than in North America or Europe. Paul Erickson, an analyst at Parks Associates, questions why tests are carried out in Chile, Costa Rica and Peru of all places and not in Mexico or Brazil. Everyone can imagine the possible answer: In the smaller markets, the risk of testing is lower.

But even the test runs loudly”Rest Of The World” not exactly without problems: We “spoke to more than a dozen Netflix customers in Peru, many of whom say that more than two months after the new regulation was first announced, they have not received any uniform information about the new fees, nor that they appear to be subject to the same measures.”

Netflix is ​​experimenting with additional fees for account sharing

For some, the price increase was enough to cancel their Netflix subscription. Netflix will also evaluate this as a percentage to see how larger markets potentially react. Other people simply ignore Netflix’s attempts and carry on as usual with impunity. “Overall, the ambiguity surrounding how Netflix defines a ‘household’ and the different fees charged for different customers have confused subscribers in the study, threatening action by consumer regulators.”

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After all, it’s just a test, and Netflix will be collecting data to decide how to proceed in larger markets if it plans to expand its actions into more markets by the end of the year. At least the “household” defined Netflix on request and confirmed that it is not a family that may not live together, but the actual household that lives together. It was also confirmed that apparently different fee models are used for test purposes. This has called the consumer protection of the countries on the plan, which are said to have sought the conversation in May. In Peru there is also a statement that calls on Netflix to provide more clarity and to stop possible discrimination in prices. Netflix defends itself by saying that users can simply adhere to the terms of use and are then not additionally charged.