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. Worried About Your Weak Passwords? © 2021 CNBC LLC. The Streamable first reported about the trial. 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. 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. 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.” In 2016, Netflix co-CEO Reed Hastings said at the … But its current trial also improves your security in the process. “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. 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. Netflix's basic plan costs $8.99 per month. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. The test could be applied for account security as well as sharing passwords. 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. The message reads: "If you don't live with the owner of this account, you need your own account to keep watching." Sharing passwords is as endemic to the Netflix experience as having your favorite show canceled two seasons in. Netflix has historically ignored password sharing, even as about one-third of all users share passwords. Between January 2018 and December 2019, credential stuffing attacks targeting video services doubled, according to Akamai research. WIRED is where tomorrow is realized. All Rights Reserved. What’s the actual harm if I pass along my password to a cousin or not-so-casual acquaintance? The breakthroughs and innovations that we uncover lead to new ways of thinking, new connections, and new industries. All rights reserved. ; … 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. Sign up for free newsletters and get more CNBC delivered to your inbox. That’s just asking for trouble. It can come in a few forms. Netflix, which boasts 203.67 million users worldwide, has been fairly sanguine about password sharing over the years, acknowledging that this practice just comes with the territory. 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. 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 new feature on a small number of accounts to crack down on password sharing. Netflix is testing a feature seemingly meant to curb password-sharing between users who are not members of the same household. And yes, it is always annoying when a gravy train goes off the rails. But it’s still a surprise move from a company known to endorse password-sharing in the past. 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. Analysts on what's next. Netflix is testing a way to crack down on password sharing. © 2021 Condé Nast. Look, we get it. A Netflix subscriber shared a screenshot on Twitter, showing that the streaming service is making a move to crack down on password sharing. The year 2016, in particular, marked a sort of heyday for the company's laissez-faire attitude about password sharing. "This test is designed to help ensure that people using Netflix accounts are authorized to do so," Netflix said in a statement. Netflix is testing out ways to stop account holders from sharing their passwords -- and access -- with others who don't own a subscription. 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. And given how often people reuse passwords across multiple sites and services, that means your exposure could extend far beyond Netflix. 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. Depending on how this turns out, they will continue it or not. “Short term, what this is going to stop is the bulk sale of credentials of this type,” says Ragan. The company's standard plan is $13.99 per month, which allows users to watch Netflix on two screens at the same time. Got a confidential news tip? Photograph: Aleksandar Nakic/Getty Images, thousands of accounts immediately popped up on dark web markets, Things not sounding right? Netflix is just running an experiment to see if cracking down on pw sharing makes them more money than it loses. Netflix password sharing may become a thing of the past, if the latest feature the streaming giant is testing proves to be a success. Netflix is running a test cracking down on password sharing. 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 … It spreads. A new feature, which is getting a … Here's How to Fix Them. OK, but why? 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. It’s not the end of the world. And while Netflix’s flirtation with a password-sharing crackdown is by no means altruistic—not that anyone has read the terms of service, but it does specify that your account “may not be shared with individuals beyond your household”—it’s also true that sharing user names and passwords with even your closest relations can have woesome consequences. If they’re unable to do so, they’re offered a free 30-day trial to start their own account. Netflix is testing a new feature that could signal the start of an effort to crack down on password sharing. But that doesn’t mean you should be reusing your passwords. It’s a little inconvenience for a lot more peace of mind. 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 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 … 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. We want to hear from you. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. Look, let’s be honest. 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. 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. About 33% of all Netflix users share their password with at least one other person, according to research firm Magid. Netflix has allegedly introduced new potential measures that will prevent password sharing between multiple households or friends. Check out our favorite. 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. According to a spokesman, Netflix tries "hundreds" of tests a year with select customers. The streaming service is making account owners enter two-factor codes in a limited test. It’s a compounding issue.”. “It would help prevent those attacks,” says Lorrie Cranor, director of the CyLab Security and Privacy Institute at Carnegie Mellon University. In that view, security is an ancillary benefit. 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. The Streamable was first […] The more of those people who actually pay for what they watch, the better Netflix’s financial position becomes. First spotted by GammaWire and then confirmed by The Hollywood Reporter, the streaming giant is … Again, it’s unclear whether Netflix will expand this test, or explore other ways to clamp down on password sharing. For many years, it seemed clear that Netflix wanted to be the latter. If two users of the same account do not live together, they may be prohibited from using the same account. Netflix has begun to introduce two-factor authentication among its users, a new move to crack down on password sharing. 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. Ad Choices, Netflix's Password-Sharing Crackdown Has a Silver Lining. Netflix has begun testing a feature that asks viewers whether they share a household with a subscriber, in a move that could lead to crackdown on the widespread practice of sharing … At long last, Netflix is making a real attempt at cracking down on password sharing. Get this delivered to your inbox, and more info about our products and services. … 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. According to research firm Magid, around 33% of Netflix users share their passwords with at least one person. Yes, security issues. Netflix has never made a big deal about password-sharing, but a new test suggests the company may be reconsidering. To revist this article, visit My Profile, then View saved stories. Netflix has generally ignored something that has obviously been going on for years: customers sharing their login and password with others outside their … The test involves showing a new screen to users who may be using another user's account. Spotted by GammaWire, some viewers … A Division of NBCUniversal. 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. 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. Evidence suggests that password sharing among friends and family for different types of accounts, such as streaming services, is a regular occurrence. Admittedly, freeloaders primarily threaten the cohesiveness of your recommendations lists. Requiring that you enter a code to access your Netflix account also doesn’t stop you from sharing your credentials. The WIRED conversation illuminates how technology is changing every aspect of our lives—from culture to business, science to design. Wired may earn a portion of sales from products that are purchased through our site as part of our Affiliate Partnerships with retailers. 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. 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.

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