Reed Hastings, co-founder and director of Netflix, delivers a speech when he opens Netflix France’s new offices in Paris on January 17, 2020.
Christophe Archambault | AFP | Getty Images
Netflix has never made a big deal out of password sharing, but new evidence suggests the company might be reconsidering it.
Netflix is testing a new policy with some customers, causing some people to sign up for a separate account if they are not watching with the subscriber.
The message says, “If you do not live with the owner of this account, you need your own account to continue viewing it.” The Streamable first reported on the trial.
According to a spokesman, Netflix tests “hundreds” of tests a year with select customers. The test may not lead to greater repression of password sharing. The test can be applied for account security and for password sharing.
“This test is designed to help ensure that people who use Netflix accounts are allowed to do so,” Netflix said in a statement.
According to research firm Magid, about 33% of Netflix users share their password with at least one other person. Netflix’s basic plan costs $ 8.99 a month. The company’s standard plan is $ 13.99 a month, which allows users to watch Netflix on both screens at once. Historically, Netflix has not done much to stop the exchange of passwords, as the strong growth in the number of subscribers and their share price offset any concerns about lost revenue.
Netflix announced earlier this year that it had more than 200 million global subscribers, but shares have surpassed the S&P 500 this year as investors have moved away from growth stocks. Netflix also has to fend for itself with a number of new streamers, including Disney +, AT&T’s HBO Max, NBCUniversal’s Peacock, and ViacomCBS ’Paramount +, to ensure users don’t switch to competitive services.
Disclosure: NBCUniversal is the parent company of CNBC
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