Netflix Considering Clamping Down on Password Sharing

Netflix is planning to stop users from sharing passwords among different households. Recently, some users have observed that they could no longer get past the login screen, with a notification message informing them they needed to be in the same household as the account owner.

The message reads: “If you don’t live with the owner of this account, you need your own account to keep watching.”

Netflix is trying out a new policy with some customers, prompting certain people to sign up for a separate account if they aren’t watching with the subscriber.

In case it’s the account owner trying to log in from a different location, Netflix gives the option of sending a verification code. So far, the message reportedly appears only on TV devices.

According to a spokesman, Netflix tries “hundreds” of tests a year with select customers.

“This test is designed to help ensure that people using Netflix accounts are authorized to do so,” Netflix said in a statement.

Research firm Magid reported that about 33% of all Netflix users share their password with at least one other person. 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 strong growth in subscriber numbers and its stock price offset any concerns about lost revenue.