Netflix tests clampdown on password sharing

Netflix might soon take an uncompromising position on password sharing, as the company this week began to test a verification system designed to dissuade the common practice.

A select number of subscribers this week were met with a prompt reading, "If you don't live with the owner of this account, you need your own account to keep watching," reports The Streamable. Users were then asked to verify their account by entering a generated code sent via email or text.

"This test is designed to help ensure that people using Netflix accounts are authorized to do so," a Netflix representative told the publication.

It is unclear how Netflix is monitoring password usage, though an easy route would be IP address tracking.

The test is reportedly limited to customers accessing the service through smart TVs, though testing could expand at a later date and become standard policy. Alternatively, nothing might come of the test, as the company told CNBC it conducts "hundreds" of similar trials each year.

According to research firm Magid, about 33% of Netflix users share their password with at least one other person, CNBC reports. The practice leads to lost revenue for Netflix, though the firm has done little to thwart freeloaders in the past.

Netflix's basic $8.99-a-month price tier limits streaming to one screen, while the step-up $13.99 tier allows for shows to be streamed to two screens simultaneously. The service's terms and conditions restrict credential sharing to members of a single household.

Greg Peters, Netflix's chief product officer, in an interview with The Wall Street Journal in 2019 said the company monitors password sharing but had no plans to take action against those who access the service without authorization.

20 Comments

zeus423 270 comments · 19 Years

About 3 years ago

I can see a few problems with basing this on IP address tracking. My Netflix account allows me to watch on two devices at the same time. Let's say I'm watching from home but my wife wants to watch while she's at work (during lunch, of course). Or perhaps I go on vacation and want to watch Netflix while falling asleep on the beach? How about students who go to college and log in via their parents' account? They are in the same family and should be able to use the same account, but the IP addresses would be vastly different. Hopefully Netflix does some pretty thorough testing before rolling this out to the masses.

davidw 2112 comments · 17 Years

About 3 years ago

zeus423 said:

I can see a few problems with basing this on IP address tracking. My Netflix account allows me to watch on two devices at the same time. Let's say I'm watching from home but my wife wants to watch while she's at work (during lunch, of course). Or perhaps I go on vacation and want to watch Netflix while falling asleep on the beach? How about students who go to college and log in via their parents' account? They are in the same family and should be able to use the same account, but the IP addresses would be vastly different. Hopefully Netflix does some pretty thorough testing before rolling this out to the masses.

Right now, none of those are issues.

For one, a Netflix account is for a household, not its family members. So any family member not living in your household is not entitled to use your account in their household. This is not like a family account for streaming music. So using an IP address would work here.

Plus, as mentioned in another article about this, for now, this IP sharing crackdown only applies to TV boxes, Smart TV's and maybe smart Bluray players and game consoles. So far it doesn't apply too mobile devices like phones and tablets. So unless you and your wife travel with your flat screen TV, TV box, Bluray player or game console, it doesn't matter what IP address you're using if watching your Netflix account while traveling with a phone or tablet. So theoretically, a kid in college could log into their parents Netflix account with an iPad or iPhone and stream it to a TV with AirPlay, and not be affected. For now anyways. (But I do remember a while back an issue with Netflix not supporting AirPlay unless they were given info about the TV that was being used. Maybe related?)

One of the way Netflix can make this work is to monitor how often you're using a different iP address to log in with a TV, TV box, Blurry player or game console. If only occasionally, then its not a problem. As you might be just be visiting another household and want to watch a movie there, using your Netflix account. Just be sure to log out when you leave.

Though I do know a few friends that would bring their Apple TV to another friends home so they can use it there to rent a movie on iTunes or use an app to watch some sport game that they subscribe to. But they don't leave the Apple TV there when they leave and this way, they don't have to log into any of their accounts on someone else's TV.

I have purchased many used Bluray players and Wii game consoles from Goodwill, where when I get them home to test, they still had someone Netflix account on it and was able to log in once connected to my WiFi. Many people just don't remember that they have to make sure to log out of their Netflix (and others) account, before giving their Wii or BluRay player away. Devices like these remember your account log ins, so you don't have to log in every time.

EsquireCats 1268 comments · 8 Years

About 3 years ago

If they wanted it to be this way they should have enforced it from the very beginning. The practice is now common and likely has helped Netflix’s penetration. When advertising by the number of screens it’s not unreasonable for the consumer to assume this means their second screen is for another personal contact who is not necessarily in the same household.

Eg How annoying will it be for couples that don’t live together, having to text each other codes back and forth each time one dares to use the service as advertised.

As online services begin to feel the squeeze but wish to continue ever growing revenue, I’m beginning to hate all the subtle ways that the services progressively become worse. Eg by festering them with advertising, adding pay-per-view specials, reducing their catalogues or cutting off common usage scenarios like these.

maestro64 5029 comments · 19 Years

About 3 years ago

If they are just using an IP address, this becomes problematic with the use of a VPN connection. There are couple VPN services that play nice with Netflix. However, during my research of doing whole home VPN using a router verses individual device, you need to make sure any service you use works through the VPN you have an account with, like Netflix. The problem comes in when the VPN may randomly reassign your public IP address as well as the server location you might be using, If Netflix check the IP location against you home address it could cut you off of the two do not line up.

I looked into getting router that allows selective routing to the VPN and there is only one on the market and it has privacy issues of reporting your traffic to third parties including your VPN activity which negate the reason for having a VPN.

You may not think this is an issue, however, more and more people are using VPN because ISP’s are selling user data.

davgreg 1046 comments · 9 Years

About 3 years ago

zeus423 said:

I can see a few problems with basing this on IP address tracking. My Netflix account allows me to watch on two devices at the same time. Let's say I'm watching from home but my wife wants to watch while she's at work (during lunch, of course). Or perhaps I go on vacation and want to watch Netflix while falling asleep on the beach? How about students who go to college and log in via their parents' account? They are in the same family and should be able to use the same account, but the IP addresses would be vastly different. Hopefully Netflix does some pretty thorough testing before rolling this out to the masses.

Hulu currently does this kind of thing on some devices-or has in the past.
I work weekends out of town in a hospital - part of it call - and have been locked out of live streaming on my iPad Pro. Strangely enough I could log in on my MBA and watch.