Netflix has more than 200 million subscribers worldwide and the company is now looking for ways to restrict password sharing for commercial and security reasons.
A new feature, first identified by GammaWire, prevents unauthorized people from using your account from accessing it. A Netflix spokesman said The Verge, “This test is designed to help ensure that people using Netflix accounts are authorized to do so.” If Netflix detects that someone is trying to use the account without being the account owner, that person will be asked to verify it later or to be the account owner using an email code or text code.
If someone is unable to verify account ownership within a certain time, they will not be able to stream any content from Netflix. Instead, they will be asked to do their own accounts. Although this may not prevent all password sharing – hypothetically, an account owner could send the code to a friend as soon as he passes it – the idea is that this will prevent some password sharing.
The test, which is not country specific for a specific period of time, is also being implemented to try to improve security measures in relation to account protection. If there is a malicious attempt to use an account for which someone may have obtained a password through fraudulent methods, that person will not be able to access the account.
One of the biggest questions Netflix subscribers may have is what constitutes a home account. Netflix’s terms of service state that the streaming content on the platform is “for your personal, non-commercial use only and cannot be shared with people outside your home”. This may mean a physical residence, but the terms of service are not very clear. Families with children in college or living in different states can enroll in the family plan, for example. This is a scenario that co-CEO Reed Hastings specifically spoke about in 2016.
“Password sharing is something you need to learn to live with,” said Hastings. “There is just as much sharing of a legitimate password as you share with your spouse, with your children, so there is no clear line and we are doing well as we are.”
Now, however, it seems that Netflix teams are trying to figure out a way to combat password sharing while addressing stricter security measures. Password sharing has been a concern raised by space analysts and investors. Parks Associates’ analysis estimated that password sharing and hacking cost companies in the streaming space only about $ 9 billion. Although Hastings, along with other entertainment executives, shrugged his shoulders as something companies have to face, things seem to be starting to change.