Netflix is testing a crackdown on password sharing

Although historically Netflix has not cared about users sharing their passwords, a new test may show that they are starting to care.

Some users as they sign-in are being shown a prompt with some new text. The new text says “If you don’t live with the owner of this account, you need your own account to keep watching.” Netflix says that this prompt was made to “ensure that people using Netflix accounts are authorized to do so.”

About 1/3 of Netflix users share their passwords with friends and families according to research from Magid. Though it is unlikely that Netflix will expand this test, it may just be done to make sure accounts are secure as well as encouraging people to subscribe with their own accounts.Click here to read the source article

Should Netflix be worried about users sharing their passwords? Why or why not?

To read the full article, click on the “Full Loaf” image above! Come back after and let us know your thoughts.

By Jorge Sanchez

Writer at Today's Dough since January 2021.Jorge is involved in organizations such as FCCLA and DECA, where he holds various leadership positions. Jorge serves as the 2021-2022 Florida FCCLA State President, and 2021-2022 JHS DECA Vice President of Project Management.He currently attends Jefferson High School in Tampa, FL, and participates in the Business and Finance Leadership Academy.

47 thoughts on “Netflix is testing a crackdown on password sharing”
  1. This is just a marketing strategy to try to get more subscribers. Of course it deems a bigger risk for the owners of the account, but the damage is mostly done to Neftlix as they are not getting new customers.

  2. Netflix should and shouldn’t be worried about password Sharing the reason they should is if the person has an account that allows multiple people to be on at a time. The reason they shouldn’t is because they still make a lot of money from those who do already have bought accounts and password sharing doesn’t last forever between people so eventually they’ll get account if they truly want one.

  3. They shouldn’t care about users sharing passwords because they are making a lot of money off their subscribers right now. This market strategy is to try to gain more subscribers but with this new feature people might not be interested in buying Netflix anymore.

  4. I feel Netflix should be worried because if people are sharing passwords even though Netflix gains more viewership through it I don’t think it benefits them like you would think. Netflix isn’t making money from passwords being shared because they aren’t gaining new members so this tactic to crack down on password sharing could benefit them in the long run.

  5. This is all just to get more subscriptions to make more money. So honestly it isn’t that big of a deal but it is still annoying to users who don’t want to or don’t have the money to pay for Netflix.

  6. I feel that they shouldn’t care because some parents may get Netflix for their kids to watch it and they don’t even use it. Also upgrading your account so more than one person can use it at once prompts people to share an account. Or people may have multiple smart TVs in their house and logs in on everyone of them with the same account because it is more convenient. Though I feel this is a good profit strategy because since you can’t share a password with someone I feel it would cause people to get their own account.

  7. Should Netflix be worried about users sharing their passwords? Why or why not?
    Netflix shouldn’t be worried about who shares passwords and who doesn’t because they’re still making money off of subscribers. Also I think this is just a marketing strategy to get more people to subscribe.

  8. I don’t think that Netflix should be worried about users sharing their passwords because the customers paid to upgrade their account so that they are able to share with others. I think the purpose of Netflix doing this is because its a good marketing strategy. This way they will be able to make more profits by making others open up another account.

  9. I feel Netflix should care about password sharing because that is money they’re losing. Netflix would be losing money if one person pays for the subscription then that is shared several times. That allows multiple people to go watching Netflix without paying. They would make more of a profit if everyone had their own account.

  10. I don’t think Netflix should be worrying about who is sharing their password or not some people cant afford it and use someone else’s it still benefits them because their getting views and eventually they’ll stop sharing because when their too many people eon a account already it stops some people form watching. Although it would be beneficial to them some people don’t really watch Netflix anymore its still benefiting them in some kind of way just not profit wise.

  11. As a company I would think they need to worry about it. They’re losing potential costumers whenever a Netflix user shares their password. This is quite important to them and I can see why. Netflix using this new question is smart a little protective but smart. they will definitely make more profits if they do implement it.

  12. i don’t think that Netflix should be worried about users sharing passwords because they might be unable to afford the expense of Netflix and enjoy it and in the future they might buy a Netflix account but don’t fix something that’s not broken

  13. I agree they should care its important to them that they keep their sales up. Netflix loses money every time someone shares their password with someone. This new system will help them a lot.

  14. I do think it would be beneficial if those users that are sharing passwords bought an account…but I don’t think they will or want to buy an account because a benefit of them sharing the password is so that they don’t have to pay for it.

  15. I believe they should care about people sharing passwords with others to watch Netflix just because it can help expand their marketing but also there cant be many people on the same account to watch shows and movies because netflix gave it a limit of 4 people possible to watch at a time

  16. In my opinion they shouldn’t care about sharing passwords because some families get it and share it with their children, in this case I can see why they are starting to care because that’s making them lose money but also their movies become popular because the fact they have such a big audience. Without the share of passwords I don’t think as much people will pay for it and watch it, and that will lose business for them.

  17. Should Netflix be worried about users sharing their passwords? Why or why not?
    It all depends on who is shared by and who is using it. They should make it so you can only give it to more than one person depending on who you want to give it to. But hacking into the system to get the password isn’t good. Overall yes I think they should crack down on passwords just to be on the safe side.

  18. Netflix should be concerned about who is using the accounts passwords but to a certain extent. if its the same family or friends there shouldn’t be an issue but if it comes to hacking action must be taken as its a stranger who you don’t know taking your money.

  19. I think Netflix should feel worried about users sharing their passwords, as the more people sharing one account, the less revenue they are getting. I understand y’all wanna be cheapskates and use a friends or families’ account, but every excessive account shared is money that Netflix is bleeding out. Think about it like this. If you were selling passes to use your house, and a customer goes and photocopies it so that his friend can also use your house, isn’t that lost money? Couldn’t you have made more money if that friend bought a separate pass? This is how Netflix feels

  20. I feel like Netflix should not be worried about people sharing passwords. Either way they are still going to get a lot of money. I feel like they have bigger problems to worry about than people sharing usernames.

  21. I believe they should worry about people sharing their accounts because from a business perspective, they are losing money and that is always bad. If Netflix makes account sharing harder then I believe their profits will rise.

  22. Should Netflix be worried about users sharing their passwords? Why or why not?
    I do not feel like Netflix should be concerned. Merely because you could only share your password with so many people. And as a consumer, I know that you have to pay for the amount of screens using the app at the same time. I don’t think most people are willing to pay more to let their family and friends to share an account. I could see why they are worried though. They just want to get a fair amount of money received for the amount of people that use the app.

  23. I feel like Netflix would just lose more money if they start stopping people from sharing passwords because they would most likely lose more customers than gain. But sharing passwords still bring less money to the company since there are more people that don’t pay for it. In the end, the company will just lose money no matter what.

  24. Yes Netflix should be worried about password sharing because those are crucial subscriptions and revenue they are missing out on. When Netflix starts to see less profits from a $10 a month subscription because they aren’t getting enough subscribers they then tend to raise the price to make those profits. Also 1/3 is a huge number of people that are likely to be sharing and them being able to share to multiple people the chain gets bigger and so the the revenue loss.

  25. On my opinion this was conducted to scare users not using their own paid account. Their move was focused on increasing their revenue by forcing people into their own account. This may not work as not many people took serious interest in it or downright lied about it.

  26. Netflix should be worried about users sharing passwords, since not doing so will cause the company to leave a major source of revenue untapped. For instance, according to the article, Netflix has topped 200 million global subscribers in 2021. Of those subscribers, potentially around 33% have shared their passwords with at least one other person. This leads to Netflix potentially losing out on at least around 66,000,000 subscribers. If each of those missing subscribers bought Netflix’s basic plan for $8.99 per month, Netflix would have received at least about $593,340,000 in additional revenue per month. Sadly, the company is not receiving that revenue due to a failure to crackdown on users sharing passwords.

  27. I don’t think Netflix should worry for the most part unless for security reasons when an unauthorized person goes into someone’s account.

  28. This would get them more money because people that are sharing accounts will buy Netflix if they want to watch something on it. On top of that this could also upset people because it wasn’t a problem till now and i feel like people will get mad.

  29. I think that Netflix shouldn’t be worried because a lot of people have Netflix now so there are less people sharing passwords. Regardless if people are sharing passwords or not, they’re still making a lot of money but I can see why Netflix would want to do this because they can get more subscribers. At the end of the day, people are still going to continue sharing their password with friends and family, there’s nothing Netflix can really do about it.

  30. They should not be worrying about it but if they is so worried about they should limit the amount of people that should use it.

  31. Netflix should not worry about users sharing their passwords because the limit to how many people can watch something on a single account is good enough to make sure more people will subscribe with their own account rather than sharing one with a relative, friend, etc. However, if they’re looking to attract more subscribers for revenue, then they should be concerned with the variety of people using the account, in this case being anyone who lives outside the account owner’s house.

  32. This is honestly a way for netflix to compete against disney +. They want a way to have more subscribers in order to make more money.

  33. I think netflix should be worried about users sharing passwords because that means they aren’t making profit. They wouldn’t be making profit because the users that got the shared password aren’t the ones paying for the netflix.

  34. Netflix should be worried about password sharing because it decreases how much money they make off of the membership. If it’s shared with a max of four or five other people, then it should be okay, but eventually it turns into a point where we’re not paying full price for this streaming service. Many people also complain that Netflix doesn’t put out or provide any favorable content, but this could improve if we change the password sharing just a bit.

  35. The only reason why I would see that Netflix should be worried about shared accounts is because i know they always want more people to spend their money and watch the films, But at the same time They shouldn’t be worried overall because millions of people use the app already and it’s very popular worldwide so a couple people trying to save money doesn’t seem like such a big deal to me.

  36. I don’t think Netflix should be worried about password sharing because password share gives them more views and once the person stops sharing their password the other person will be more motivated to get their own account so they can continue to binge watch their favorite shows.

  37. I don’t think Netflix should be worried about password sharing because the person who paid for it has the right to share and let people use their account or make accounts cause they paid for it it’s there account

  38. I think there should be a limit to how many the account can expand via device. I think they shouldn’t care too much because what if the owner wants it on their phone on-the-go or on their tv on movie nights. I think there should be a limit though because Netflix shouldn’t risk loosing so much money.

  39. I do and don’t feel that Netflix should be worried about password sharing. Password sharing is inevitable no matter how much the try to do to stop it. They paid for the account so they are able to have many accounts. I think that Netflix just needs to accept the fact that password sharing is going to happen and that they will be loosing some money because not everyone is going to make an account.

  40. Netflix should be worried about their users account password being scared with others. It decrease their sales; Not only that, it can cause a lot of situations such as people changing passwords and locking the original owner(s) out.

  41. Netflix should not be worried abt users sharing passwords because they still make a lot of money from all the people that have a Netflix subscription right now , Netflix is trying to gain more subscribers by mentioning this idea to get more people to create their own accounts instead of sharing with other people .

  42. Netflix should worry about sharing passwords because that is money they are losing, they are losing money if one person pays for the subscription and then shares it multiple times, they would get more profit if everyone had their own account.

  43. I think Netflix should worry about sharing passwords because that is money they are losing and they are losing money if one person pays for the subscription and then shares it multiple times with others people, they would get more profit if everyone had their own account.

  44. I feel like, Netflix will loose a lot of money if they do follow through with this. Being that I know strongly,that many people share passwords. They’ll be losing those that own the account, as well as the ones sharing the password. But Netflix knows best,so we’ll see how this works out.

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