However, in trials in Chile, Costa Rica and Peru, sub-memberships increased the monthly cost of an account by one-quarter or one-third, according to Variety. Netflix hasn't revealed the cost of any potential membership fees. Last fall, the service also introduced a dashboard that lets account users log out of individual devices. That includes letting members see all the devices using an account and making it easy for people to transfer individual profiles into separate accounts. Netflix has said it recognizes that the new policy is a major change for customers, and it has sought to cushion the blow by touting new features aimed at making the transition less painful. He cited the example of a family whose children go to a sleepaway camp or go away to college, putting them geographically outside their "household." That should be treated differently than a household sharing with a person who's never lived there, he said. "You also have to be sensitive about what you consider a household," he said. Netflix could turn off customers if it comes across as too heavy-handed, noted Verna. Speaking to investors last month, co-CEO Peters described the company's goal as to "give a little bit of a nudge and to create features that make transitioning to their own account easy and simple." What's a household? This could be a relatively frequent occurence, Netflix says, noting that "Device verification may be required periodically." The person logging on from a new device will have to enter the code within 15 minutes of logging in. To do this, Netflix says it will send a four-digit code to the account's primary email or phone number. "f your account is accessed persistently from a location outside of your household, we may ask you to verify that device before it can be used to watch Netflix," the website says. According to its website, the company might ask devices that log on from an unfamiliar IP address be "verified" before they're allowed to stream. One way Netflix could limit the reach of an account is through multi-factor authentication. "You can't charge a price point where people are going to be horrified and complain that this thing that's been free for so long is suddenly costing a lot of money. "You have to tread very carefully with these things, because you can't upset your customers," Verna told CBS MoneyWatch. The rollout poses a risk to the premier streaming service, said Paul Verna, principal analyst at Insider Intelligence. "From our experience in Latin America, we expect some cancel reaction in each market when we roll out paid sharing," the company told investors, noting that could hurt its viewership in the short term. Netflix predicted a similar response in the U.S. Many users were able to avoid the extra charges, while others were prompted to pay more and responded by canceling their accounts, the outlet said. Tech publication Rest of World called the test " a mess," reporting that the new policy was rolled out inconsistently. The company tried password limits last year, when it asked members in Chile, Costa Rica and Peru to pay an additional fee to share with non-household members.
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