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Netflix tries to combat password-sharers with new family plan

Netflix Reuters.JPG

A DVD rental from Netflix is seen with the company's website.Reuters

Everyone knows that sharing is caring. That's why potentially 10 million people are using Netflix for free. And while there's no shame in sharing your password with friends and family, that doesn't mean Netflix is going to sit back and let it happen. At least, not without trying to make some money out of it.

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On Monday, the streaming service introduced a $11.99 per month family plan that allows up to four users to stream simultaneously (the current $7.99 per month plan limits streaming to two users).

In Monday's quarterly letter to shareholders, CEO Reed Hastings and CFO David Wells reasoned, "A few members with large families run into our two-simultaneous-stream limit." While that makes sense (if you like every member of your family isolated and engrossed in different shows in separate rooms), the plan will also open up the opportunity for subscribers to share their password even more. For just $4 more a month, Netflix subscribers can double the amount of moochers per account. Not a bad deal if you're splitting the bill with whoever's piggybacking, if you ask us.

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