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.
Source: The Streamable
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.
Source: The Streamable
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.
Comments
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.
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.
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.
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.
Based on what I read above in the Terms of Use, the following are prohibited: (these are my interpretations of the Terms)
With regards to the topic, I use my account at my sister's house when I visit every week or so, and generally leave their ATV 4K logged in to my account. I don't think they use it much, except when I'm there, so I'm curious how Netflix might decide to handle this in the future.
Most Apple devices only work well with a single AppleID so Apple & Netflix should have a discussion to better leverage Apple technology for a family tier. While they’re at it they can discuss AppleTV/Siri integration.
Yes I moved from 4K to HD and less devices in response to the price hike.
I think Netflix should simply charge per device and per quality.
e.g. 1 x device at 4k would cost more than 1 x device at HD and 2 devices should cost double. I.e. no cost saving for extra devices.
At present you have to pay the top tier if you only want one device on 4K which sucks and is the reason people “share” their account.
I'm talking to you, Netflix.
I agree that you have every right to petition for Netflix to change its pricing so that it benefits you better.
But I presume you weren't trying to say that there should be some law requiring that Netflix change its pricing structure because it doesn't work for you. All my life I've wanted fast food companies to stop selling "extra value meals" because those "bundles" don't really work well for me. It would be better for me if fast food was sold on an "a la carte" menu instead of bundles, just like you want Netflix to stop bundling things in a way that doesn't help you. But I realized a long time ago that I can't impose my preferences on any other person or corporation. I'm not the ruler of the world (yet.)
If a couple are divorced and the kid spends all the time living with one parent but they take turn every year claiming the kid as a dependent when filing taxes, the IRS still consider that kid as part of the "tax household" of the parent who don't have the kid living with them but claimed as a dependent.
However, with the US Census, if your son spend most of the time living away for college, he is not counted as part of your household. He is counted in the household where he lives most of the year. Even if he comes home for 3 months out of the year when not attending class. But if he happens to be living at home on April 1st, the date in the year of the census, he can be counted as part of your household. But it's one or the other, not both.
With most Federal subsidy program, a household are the people living in one housing unit, that are somehow related.(by blood, marriage, adoption, foster, etc..) If you have a dependent child that is living with their grandmother elsewhere, that child is not counted as part of your household when applying for any Federal subsidy program. But will still be considered by the IRS, as part of your "tax household", if they are a dependent on your tax return.
I wouldn't think companies like Netflix, when they say "household" are using the IRS definition. If anything they are using the definition under the US Census or Federal subsidy program or something in between.
If 3 people became roommates by renting a house together and one of them got a Netflix account, I would think that Netflix would consider that a "household", even though they are not related and would never be considered a "household" with the IRS or under most Federal subsidy program. But would be a "household" under the US Census.
Netflix: why not both?