Netflix co-founder and director Reed Hastings will deliver a speech at the inauguration of Netflix France’s new offices in Paris on January 17, 2020.
Christophe Archambault | AFP | Getty images
Netflix has never made a big deal on password sharing, but a new test suggests the company may be reconsidering.
Netflix is trying out a new policy with a number of customers, asking certain people to sign up for a separate account if they don’t watch the subscriber.
The message reads, “If you don’t live with the owner of this account, you will need your own account to keep watching.” The Streamable first reported about the trial.
According to a spokesperson, Netflix tries ‘hundreds’ of tests per year with selected customers. The trial may not lead to a greater approach to password sharing. The test can be used for account security and password sharing.
“This test is designed to ensure that people using Netflix accounts are authorized to do so,” Netflix said in a statement.
According to research firm Magid, 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 subscriber growth and stock price offset any concerns about lost earnings.
Netflix announced earlier this year that it had more than 200 million subscribers worldwide, but its stocks underperformed the S&P 500 this year as investors have moved away from growth stocks. Netflix also has to fend off a slew of new streamers – including Disney +, AT & T’s HBO Max, NBCUniversal’s Peacock, and ViacomCBS’s Paramount + – to keep users from switching to competing services.
Disclosure: NBCUniversal is CNBC’s parent company
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