With more than 200 million worldwide users, password sharing on Netflix is old news. But now the company is to curtail this for commercial and security purposes.
A new feature, first noticed by GammaWire, prohibits users who are not allowed to use the account from accessing the account. If Netflix notices attempts to access an account without being the owner they will be prompted to confirm later or validate they are the owner via an email code or text code.
Netflix confirmed the new feature, which is getting a limited rollout. "This test is designed to help ensure that people using Netflix accounts are authorized to do so," a Netflix representative said.
If someone can't verify their ownership within a given timeframe they will be prevented from streaming content from Netflix. Instead, they will be asked to create their own account. This doesn't eliminate all password sharing. Account owners can pass on codes to others.
The test, which is not exclusive to any country for any specific time, will also strengthen security measures for the protection of accounts. If a malicious effort is made to use an account, they will not get access.
Netflix viewership rose during the pandemic. It hit 200 million users last month and has risen almost 50% since March last year. But the company may not be able to keep momentum as people spend less time at home in 2021.
Netflix and other streaming companies have been wrestling with how to manage login sharing for years. On a 2019 earnings call, Netflix's chief product officer said the company was concentrating on stopping the sharing of passwords - but was still searching for ways.
Password sharing has been a concern among investors. Research from Parks Associates estimated password sharing and piracy cost streaming businesses around $9 billion.
