Co-founder and CEO of Netflix Reed Hastings delivers a speech as he inaugurates the new offices of Netflix France in Paris on January 17, 2020.
Christophe Archambault | AFP | Getty Images
Netflix has never made a big deal about sharing passwords, but a new test suggests the company may be reconsidering it.
Netflix is trying out a new policy with some customers, asking people to sign up for a separate account if they are not watching with the subscriber.
The message reads: “If you do not live with the owner of this account, you will need your own account to continue viewing.” The Streamable first reported on the trial.
According to a spokesperson, Netflix tries “hundreds” of tests a year with select customers. The trial could not lead to a greater suppression of the sharing of passwords. The test can be applied for account security as well as for sharing passwords.
“This test is designed to ensure that people using Netflix accounts are authorized 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. The basic plan of Netflix costs $ 8.99 per month. The company’s standard plan is $ 13.99 per month, which enables users to watch Netflix on two screens simultaneously. Historically, Netflix has not done much to stop the sharing of passwords, as the strong growth in subscriber numbers and its share price offset any concerns about lost revenue.
Netflix announced earlier this year that it had reached 200 million subscribers worldwide, but the shares outperformed the S&P 500 this year as investors moved away from growth stocks. Netflix also has to fend off a bunch of new streamers – including Disney +, AT & T’s HBO Max, NBCUniversal’s Peacock and ViacomCBS’s Paramount + – to keep users from moving to competitive services.
Disclosure: NBCUniversal is the parent company of CNBC
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