Netflix announced that it has begun testing a plan to let subscribers in three countries (Chile, Costa Rica and Peru) add accounts for up to two people outside their household for an added payment. This is part of a new strategy Netflix plans to use to restrict password sharing.

While the Netflix plan could force some subscribers to pay, others will not, and many may be forced to cancel their subscriptions or move to cheaper platforms.

Since many illegal Netflix users are now accustomed to accessing the platform’s videos for free, it may not be possible to dissuade them by paying the not-so-cheap new prices.

Netflix is undoubtedly suffering from rising inflation, which has increased costs. However, while Netflix faces an unfriendly economic climate, it is important to note that the company’s current problem with illegal streaming is the long-term consequences of an unsustainable business model.

Based on Netflix’s forecast, the company will lose an additional 2 million subscribers in the second quarter, equivalent to nearly 600,000 people who don’t believe the service is worth it.

The sources for this piece include an article in VARIETY.