What is password sharing and why is Netflix trying to stop it?

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Netflix has recently started testing a new feature and one that might change things for a lot of its users. The service has started to prompt some of its users with a message that reads “If you don’t live with the owner of this account, you need your account to keep watching.” It also encourages them to sign up for a free 1-month trial.

Why are users seeing these messages? Because Netflix suspects that you are sharing your password with someone and needs to make sure its a family member.

A recent study into password sharing revealed that about 35 percent of Netflix users share their passwords with one another. It is common in other streaming services as well. Naturally, this does not bode too well for the service because it eats into their bottom line. Historically, Netflix has not done much to stop password sharing. Its own Rs 649 a month standard plan allows a user to watch content on two screens at once.

Of course, it assumedly would mean watching the content in the same house in two separate rooms but its obvious that there has been a lot of abuse of this feature. It is common for people to buy the plan and then share it with a friend or someone else not part of the same household. This has even been a convenience to some, for example – a student watching shows on his laptop while logged in to his family account.

With the increase in competition and many strong streaming services popping up to vie for Netflix’s throne, it looks like the company may make a few changes to the way it does things. It is going to use AI and machine learning to determine if you are using a shared password. It will also ask you to verify your account through a confirmation code if it thinks you do not belong to the family account currently logged in.

It is easy to see why the company is now moving against password sharing despite having been historically quiet on it in the past. With stiff competition at the doorstep and shares at stake, Netflix will likely try and protect its interests before things get too out of hand.

On the flip side, Netflix tests a lot of things all the time. Not all the tests make it in as features to the service’s repertoire if it does not find a favourable response. This is likely the reason why the test is happening in the first place to determine whether it would anger potential users when media outlets break the story. It is also testing whether its trial offer for a month would lead to potential conversion of paid users.

It is hard to say with any certainty right now whether Netflix could potentially block users who abuse the services multiple screen plans. Truth be told, this was a long time coming, no streaming service would want 35 percent of its user base to be freeloaders and with shareholders to answer too, it looks like Netflix may just implement these measures.