Every home connected to the internet has a unique IP address for those unaware. Most devices will share a common IP address when using the same internet connection to access Netflix. Sharing an account with those that live together is allowed under Netflix's terms of service; that's why it offers multiple profiles. However, sharing your account with those outside your household isn't allowed, therefore logging multiple IP addresses against your account. Until now, Netflix has turned a blind eye to this.

Netflix announced this week subscribers in three markets, including Chile, Costa Rica, and Peru will be the first test markets to test two new features.

Netflix product innovation director Chengyi Long said:

For the last year we've been working on ways to enable members who share outside their household to do so easily and securely, while also paying a bit more.

The two new features include:

• Add an Extra Member: Members on Netflix's Standard and Premium plans will be able to add sub-accounts for up to two people they don't live with - each with their own profile, personalised recommendations, login and password - at a lower price: 2,380 CLP in Chile, 2.99 USD in Costa Rica, and 7.9 PEN in Peru; 
• Transfer Profile to a New Account: Members on the Basic, Standard, and Premium plans can enable people who share their account to transfer profile information either to a new account or an Extra Member sub-account - keeping the viewing history, My List, and personalised recommendations. 

Long added:

We recognize that people have many entertainment choices, so we want to ensure any new features are flexible and useful for members, whose subscriptions fund all our great TV and films. We'll be working to understand the utility of these two features for members in these three countries before making changes anywhere else in the world.

We can't hold it against Netflix for upholding its Terms of Service, which all users agree to when they sign up. And we can applaud them for not locking or shutting down services that are found to be in breach of the TOS. Instead, they're offering a workable solution to those users to do the right thing.

Netflix has not said if it will roll out these features to other regions, but it would be fair to assume they will after the trial has been completed in the three regions being tested.