Netflix is Testing a Crackdown on Password Sharing with Friends

Netflix is Testing a Crackdown on Password Sharing with Friends

Netflix has never made a big deal on password-sharing, but a new test suggests that the company may be reconsidering it. Netflix is trying out a new policy with some customers, prompting some people to sign up for a separate account if they’re not watching with the subscriber. 

The message reads: “If you don’t live with the owner of this account, you need your own account to keep watching.” The trial may not lead to a major crackdown on password sharing. The test could be applied to account security as well as to the sharing of passwords. About 33% of all Netflix users share their passwords with at least one other person. 

According to Magid research firm. Historically, Netflix has not done much to stop the sharing of passwords, as strong growth in subscriber numbers and its stock price offset any loss of revenue concerns.

Netflix announced earlier this year that it has surpassed 200 million global subscribers, but this year the shares of the S&P 500 have underperformed as investors have moved away from growth stocks. Netflix must also prevent a host of new streamers—including Disney+, AT&T’s HBO Max, NBCUniversal’s Peacock, and ViacomCBS’s Paramount+—from moving users to competitive services.

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