Netflix is testing a crackdown 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. Those suspected of unauthorized use will be required to verify the account through an email or a text code.

Netflix has commented on the crackdown in a statement, saying, "This test is designed to help ensure that people using Netflix accounts are authorized to do so."

Although it's commonplace now to share passwords with others, especially during the pandemic, Netflix's terms of use do explicitly say its service and any of its content "are for personal use and non-commercial use only and may not be shared with individuals beyond your household."

Netflix is reportedly losing $9 billion per year to password sharing, but presumably also knows a significant number of their subscribers would not have purchased a subscription of they could not spread the value over a number of users, especially if their own usage is intermittent.

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