Facts About Netflix Crack Down on Password Sharing

Facts About Netflix Crack Down on Password Sharing

What is Netflix's password sharing

“Password sharing is something you have to learn to live with,” co-CEO Reed Hastings said. “There’s so much legitimate password sharing, like you sharing with your spouse, with your kids, so there’s no bright line, and we’re doing fine as is”, TheVerge report.

Password sharing has long been a concern posed by analysts and investors in the space.

About 33% of all Netflix users share their password with at least one other person, according to research firm Magid. Netflix’s basic plan costs $8.99 per month. The company’s standard plan is $13.99 per month, which allows users to watch Netflix on two screens at the same time, NBC report.

How to crack down on password sharing - Netflix

Historically, Netflix hasn’t done much to stop password-sharing, as strong growth in subscriber numbers and its stock price offset any concerns about lost revenue.

Netflix’s teams are trying to figure out a way to combat some password sharing while also addressing tighter security measures.

Netflix is trying out a new policy with some customers, prompting certain people to sign up for a separate account if they aren’t watching with the subscriber. In fact, Netflix has never made a big deal about password-sharing, but a new test suggests the company may be reconsidering.

The streaming giant is testing a new feature that could help it crack down on password sharing. Netflix (NFLX) is rolling out alerts asking users to verify they are authorized to watch on the account to be able to keep watching.

"This test is designed to help ensure that people using Netflix accounts are authorized to do so," a Netflix spokesperson said in a statement. The company's terms of service say accounts "may not be shared with individuals beyond your household." According to a spokesman, Netflix tries “hundreds” of tests a year with select customers. “This test is designed to help ensure that people using Netflix accounts are authorized to do so,” Netflix said in a statement.

How to verify account ownership - Netflix

If someone is unable to verify account ownership within a certain timeframe, they won’t be able to stream any Netflix content. Instead, they’ll be asked to make their own account. While this may not prevent all password sharing — hypothetically, an account owner could send their friend the code as it comes through — the idea is that it will prevent some password sharing.

The test, which isn’t specific to any one country for any specific length of time, is also being rolled out to try to better security measures around account protection. If there’s a malicious attempt to use an account for which someone may have gained a password through fraudulent methods, they won’t be able to access the account.

When a user selects their profile on a shared Netflix account, a pop-up will ask them to verify the account by confirming with a text or email sent to the account holder. Users can also choose to verify later, in which case, the pop-up will show up again at an undetermined later time. If they can't confirm they're an authorized user, viewers will be prompted to set up a new account.

Before you panic: The new feature is just a test, and it's rolling out to a limited number of users who watch on the Netflix TV app.

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