Netflix is considering a clampdown on the sharing of passwords among friends and family members in different households. Recently, some users have reported seeing a screen that asked them to confirm if they were the account holder. Netflix, which has made it easier than ever for users to view content, has subsequently told a number of outlets that it is running a test to determine if individuals using certain accounts are authorized to do so.
Although Netflix's Standard and Premium plans allow for an account's use on two and four different devices, respectively, its terms say that users must be from the same household. The company has never been proactive in policing that rule, though, partly because it becomes a bit tricky to identify what is legitimate sharing and what is not and partly because it has never viewed the issue as being particularly serious. Company co-founder and CEO Reed Hastings explained in 2016: "Password sharing is something you have to learn to live with, because 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." Other company statements in the past have acknowledged the practice but indicated that it was not a priority to address.
The message being shown as part of the current test suggests the viewer starts their own Netflix and says, "If you don't live with the owner of this account, you need your own account to keep watching." Netflix is sweetening the deal by offering a 30-day free trial. Alternatively, the user can verify the account with the options of doing so by being emailed a code, by being sent a code via text message, or at a later date.
Will Netflix Clamp Down On Password Sharing?
Netflix has told outlets including The Streamable and the BBC: "This test is designed to help ensure that people using Netflix accounts are authorized to do so." The BBC also reports that the company has yet to make a decision about whether to roll-out the feature more widely, while Sky quotes a Netflix spokesperson as having said that "hundreds" of similar tests are done every year. It should also be noted that the test would not necessarily stop users from sharing passwords were the account holder willing to provide a verification code for a friend or family member living elsewhere.
However, there are suggestions that, as the streaming industry becomes more mature and competitive, providers may take more interest in putting a stop to password sharing. With more services competing for user subscriptions, it will become more important for them to maximize their revenues from those who are already using their platforms. For the time being, it doesn't sound like Netflix will be pursuing the matter too aggressively, but that may not be the case indefinitely.
Sources: @DOP3Sweet/Twitter, The Streamable, BBC, Sky