Recently, Netflix users have noticed a new tactic the streamer is using to crack down on password sharing. Subscribers have been seeing an onscreen prompt to send a verification code to ensure it’s really their account they’re using.
While this might be a necessary move for Netflix who could be losing up as much as $620 million a month in revenue, it’s also a sure way to lose a few subscribers as casualties along the road to tighter password control. A recent survey by Express VPN shows 78% of cord-cutters share passwords for video streaming services, and that 54% of Netflix users are likely to cancel their subscription if the streamer enforces a no-password-sharing policy. (Just to clarify, the policy is already in place, but Netflix has done little to try to enforce it up until now.)
Password-sharing isn’t a Netflix-exclusive problem, but the streamer stands to suffer the most losses in terms of quantity since it has the highest subscriber base of any streaming service. Netflix subscribers are most likely to share passwords, (86%), followed by Hulu (57%), and Amazon Prime Video (52%).
The problem doesn’t just end there, nearly 1 in 4 Americans who use Netflix admit they’re still secretly logging into their ex’s account.
With all this being said, it’s understandable that Netflix is starting to look for ways to crack down on password sharing. According to Netflix, “This test is designed to help ensure that people using Netflix accounts are authorized to do so.”