The limited test that Netflix introduced this week is basically a form of two-factor authentication, the kind you hopefully already have on most of your online accounts. The source familiar with Netflix's trial says that while the company has more or less freely allowed account sharing in the past—CEO Reed Hastings described it as “a positive thing” at CES in 2016—the situation has gone beyond that initial intent; the experiment helps explore one way to curb it that also keeps users that much more safe. Netflix must also fend off a slew of new streamers -- including Disney+, AT&T's HBO Max, NBCUniversal's Peacock and ViacomCBS's Paramount+ -- to ensure users aren't moving to competitive services. Netflix is just running an experiment to see if cracking down on pw sharing makes them more money than it loses. According to a spokesman, Netflix tries "hundreds" of tests a year with select customers. And yes, it would also potentially help Netflix’s bottom line at a time when the streaming giant faces more competition than ever, as not only Disney+ but HBO Max, Peacock, and beyond compete for your monthly eyeball candy budget. Depending on how this turns out, they will continue it or not. Use of this site constitutes acceptance of our User Agreement (updated as of 1/1/21) and Privacy Policy and Cookie Statement (updated as of 1/1/21) and Your California Privacy Rights. The message asks the user if they live in the same household as the account owner, with a prompt to enter a code delivered via text or email. The more of those people who actually pay for what they watch, the better Netflix’s financial position becomes. When Disney+ launched, thousands of accounts immediately popped up on dark web markets as hackers sniffed out the password-reusers. Netflix Tests Feature That Could Limit Password Sharing By Reuters , Wire Service Content March 11, 2021 By Reuters , Wire Service Content March 11, 2021, at 3:36 p.m. Requiring that you enter a code to access your Netflix account also doesn’t stop you from sharing your credentials. They could also, though, steal whatever personal data your profile holds. A Netflix subscriber shared a screenshot on Twitter, showing that the streaming service is making a move to crack down on password sharing. If two users of the same account do not live together, they may be prohibited from using the same account. The year 2016, in particular, marked a sort of heyday for the company's laissez-faire attitude about password sharing. The company's standard plan is $13.99 per month, which allows users to watch Netflix on two screens at the same time. Netflix is testing a crackdown on password sharing, reports Streamable. 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. According to research firm Magid, around 33% of Netflix users share their passwords with at least one person. It can come in a few forms. It spreads. In that view, security is an ancillary benefit. Netflix is testing a new feature on a small number of accounts to crack down on password sharing. The test could be applied for account security as well as sharing passwords. Analysts on what's next. Netflix tests crackdown on password sharing Netflix is testing a new feature that would prevent non-subscribers from using a friend or family member's account. The practice of throwing a bunch of purloined user names and passwords at various services to see what sticks is known as credential stuffing, and it’s hit the media industry particularly hard in recent years. "This test is designed to help ensure that people using Netflix accounts are authorized to do so," Netflix said in a statement. © 2021 CNBC LLC. The Streamable first reported about the trial. And yes, it is always annoying when a gravy train goes off the rails. Netflix has never made a big deal about password-sharing, but a new test suggests the company may be reconsidering. “And if I’ve used that password anywhere else on the internet, the criminal’s going to find it, and they’re going to have access to that, too. Yes, security issues. “Because I shared my password with you, and you got hacked, that criminal now has my password,” says Steve Ragan, a researcher at internet infrastructure company Akamai. According to a new report from The Hollywood Reporter, Netflix is trying to curb the long-held tradition of password sharing with a new feature that will catch people in the act. The media industry as a whole saw 18 billion attempts over that same stretch. WIRED is where tomorrow is realized. All Rights Reserved. If they’re unable to do so, they’re offered a free 30-day trial to start their own account. Look, we get it. Netflix's basic plan costs $8.99 per month. Netflix is testing out ways to stop account holders from sharing their passwords -- and access -- with others who don't own a subscription. It’s a little inconvenience for a lot more peace of mind. 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. Netflix is testing a way to crack down on password sharing. For many years, it seemed clear that Netflix wanted to be the latter. Netflix has allegedly introduced new potential measures that will prevent password sharing between multiple households or friends. A move to crack down on streaming password sharing at Netflix (NFLX +2.9%) is likely to bear fruit, Citi suggests, saying the habit costs streaming companies billions. Disclosure: NBCUniversal is the parent company of CNBC, WATCH: Netflix leads in Hollywood but laps the S&P 500: Analysts on what's next. A Division of NBCUniversal. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Condé Nast. The trial may not lead to a larger crackdown around password sharing. Ad Choices, Netflix's Password-Sharing Crackdown Has a Silver Lining. Sign up for free newsletters and get more CNBC delivered to your inbox. Data is a real-time snapshot *Data is delayed at least 15 minutes. Here's How to Fix Them. Netflix has been fairly relaxed on people sharing accounts for years now, but it seems as though password-sharing could be coming to an end soon.. As … Netflix has generally ignored something that has obviously been going on for years: customers sharing their login and password with others outside their … Netflix is running a test cracking down on password sharing. That’s just asking for trouble. Co-founder and director of Netflix Reed Hastings delivers a speech as he inaugurates the new offices of Netflix France, in Paris on January 17, 2020. “It would help prevent those attacks,” says Lorrie Cranor, director of the CyLab Security and Privacy Institute at Carnegie Mellon University. But even if it’s not Netflix’s top priority here, you’re much better off keeping your password to yourself. About 33% of all Netflix users share their password with at least one other person, according to research firm Magid. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. The breakthroughs and innovations that we uncover lead to new ways of thinking, new connections, and new industries. A source familiar with Netflix's trial says that the company is still in the very early stages, and sees the effort as a way both to verify who's using what accounts and to minimize the security issues inherent in unauthorized sharing. (Reuters) - Netflix Inc is testing a feature that asks viewers to verify they share a household with the account holder, the company said on Thursday, a move that could lead to a … Got a confidential news tip? Evidence suggests that password sharing among friends and family for different types of accounts, such as streaming services, is a regular occurrence. So when the streaming service starts testing ways to curtail that practice, it understandably riles up the many, many people who have come to expect communal accounts as a matter of course. Some customers are getting a message on their screens prompting them to sign up for their own account if they aren't watching with the subscriber. Christophe Archambault | AFP | Getty Images, Why Needham's Laura Martin is calling 2021 a digital attention recession, Netflix leads in Hollywood, but lags the S&P 500. It is the essential source of information and ideas that make sense of a world in constant transformation. Bad news for streamers mooching their Netflix access. © 2021 Condé Nast. Get this delivered to your inbox, and more info about our products and services. Netflix has never made a big deal about password-sharing, but a new test suggests the company may be reconsidering.. Netflix is trying out a new policy with … But its current trial also improves your security in the process. It adds a layer of annoyance for both you and your beneficiary, but it also ensures that total strangers aren’t breaking in, and keeps credential stuffing at bay. But it’s still a surprise move from a company known to endorse password-sharing in the past. A Netflix spokesperson told The Streamable, “This test is designed to help ensure that people using Netflix accounts are authorized to do so.” It isn’t clear if users in the test all need to be on the same IP address to be considered in the same household. “There seems to be a misunderstanding that sharing passwords with known individuals is not dangerous,” says Jake Moore, a cybersecurity specialist at security firm ESET. Netflix has historically ignored password sharing, even as about one-third of all users share passwords. “The truth is that we shouldn’t be sharing passwords, and adding multi-factor authentication will help this process remain better protected.”. OK, but why? Netflix announced earlier this year it topped 200 million global subscribers, but shares have underperformed the S&P 500 this year as investors have moved away from growth stocks. Check out our favorite. … That's … actually not so bad. What’s the actual harm if I pass along my password to a cousin or not-so-casual acquaintance? Netflix has begun to introduce two-factor authentication among its users, a new move to crack down on password sharing. At long last, Netflix is making a real attempt at cracking down on password sharing. All rights reserved. It’s not the end of the world. Some users have begun to see the following prompt when settling in for a binge: “If you don’t live with the owner of this account, you need your own account to keep watching.” Below that, there’s an option to get a code emailed or texted to the account owner, which you can enter to continue watching. Netflix is testing a new feature that could signal the start of an effort to crack down on password sharing. Look, let’s be honest. A new feature, which is getting a … The Streamable was first […] About 46 percent of streaming video on demand customers share the log-in of at least one service they subscribe to, according to an October study from research firm Magid. It’s a compounding issue.”. Netflix Tests a Clampdown on Password Sharing The company said a feature was being tested with a limited number of users, a move that might signal a … And given how often people reuse passwords across multiple sites and services, that means your exposure could extend far beyond Netflix. Between January 2018 and December 2019, credential stuffing attacks targeting video services doubled, according to Akamai research. The WIRED conversation illuminates how technology is changing every aspect of our lives—from culture to business, science to design. When WIRED senior writer Lily Hay Newman audited the Hulu account she herself was mooching off of a few years ago, she found more than 90 authorized devices. But that doesn’t mean you should be reusing your passwords. At least, though, a system that introduces two-factor lets you continue sharing, as long as you don’t mind passing along the occasional code. To revist this article, visit My Profile, then View saved stories. Photograph: Aleksandar Nakic/Getty Images, thousands of accounts immediately popped up on dark web markets, Things not sounding right? The much bigger issue is that the wider the password circle gets, the more risk you personally take on that your password will become compromised. The streaming service is making account owners enter two-factor codes in a limited test. Worried About Your Weak Passwords? Netflix password sharing may become a thing of the past, if the latest feature the streaming giant is testing proves to be a success. The most basic is also the most innocuous: While you might share your log-in with just one friend, you can’t control how many people they then share it with, and how many people those people share it with, and on and on, like an old Faberge commercial. And more than half of those people do so with the assumption that the person they’re sharing with will use the service repeatedly, versus a one-off viewing. Netflix's Password-Sharing Crackdown Has a Silver Lining The streaming service is making account owners enter two-factor codes in a limited test. As part of the new feature, some Netflix users will receive the following message before watching their favorite shows: “If you don’t live with the owner of this account, you need your own account to keep watching.” The content streaming service, which now … If you're using your sister's boyfriend's dad's Netflix account — listen up. That's … actually not so bad. In 2016, Netflix co-CEO Reed Hastings said at the … Again, it’s unclear whether Netflix will expand this test, or explore other ways to clamp down on password sharing. Netflix stock rose on Monday as analysts on both sides of the Bull-Bear debate weighed in on potential plans to crack down on password sharing. Netflix has introduced trial measures to try and prevent the practice of password sharing with multiple households, it has been reported by the BBC.