Netflix co-founder and director Reed Hastings gives a speech as he inaugurates Netflix France’s new offices in Paris on January 17, 2020.
Christophe Archambault | AFP | Getty Images
Netflix has never done much about password sharing, but a new test suggests the company might reconsider.
Netflix is trying a new policy with some customers, causing some people to sign up for a separate account if they are not following with the subscriber.
The message says, “If you do not live with the owner of this account, you need your own account to continue tracking.” Streamable first reported on the process.
According to a spokesperson, Netflix tries “hundreds” of tests a year with selected customers. The process may not lead to greater repression of password sharing. The test could be applied for account security as well as password sharing.
“This test is designed to ensure that people who use Netflix accounts are allowed to do so,” Netflix said in a statement.
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. Historically, Netflix hasn’t done much to stop password sharing, as the sharp rise in subscriber numbers and the price of its shares have offset any concerns about lost revenue.
Netflix announced earlier this year that it has surpassed 200 million subscribers worldwide, but equities outperformed the S&P 500 this year as investors moved away from growing stocks. Netflix must also avoid a number of new streamers – including Disney +, HBO Max from AT&T, Peacock from NBCUniversal and Paramount + from ViacomCBS – to ensure that users do not switch to competitive services.
Disclosure: NBCUniversal is the parent company of CNBC
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