Content streaming platform Netflix is looking to crack down on users who borrow passwords from friends to watch shows on Netflix. As per a report by GammaWire, the company is prepping to introduce a new password verification system via a code every time you log in to the OTT service.

Netflix has more than 200 million paid users on its platform globally and has rolled out this password checking feature for testing only for select users. This is to make sure users stop sharing their passwords and login information with other users outside of their home or family.

How will the password check feature work?

The test shows that a warning notification pops up when you are trying to log into a Netflix account prompting users to verify his or her account via a verification code sent to their mobile number.

Netflix password

(Image: Twitter)

For users who want to voluntarily let their friends have access to their Netflix account can still share the OTP and let them have access. The aim of this feature is to prevent password sharing as much as possible.

Most of the users who were part of the test simply pressed “verify later” and the warning returned for a second time.
A company spokesperson said that the “test is designed to help ensure that people using Netflix accounts are authorised to do so.”

There is competition growing in the content streaming segment and Netflix wants to streamline the number of paid subscribers on its platform and stop password sharing to gain new users.

Looking to grow

With tough competition in the streaming market, the move appears sensible as Netflix needs to pay closer attention to user growth and stop password sharing in order to gain new users.
In January, the streaming platform announced that it crossed 200 million paid subscribers in 2020 as lockdown and COVID-19 restrictions helped it gain more subscribers.

Netflix said that its average paid streaming memberships increased by 23 percent year-over-year in Q4 of 2020.

“Since the start of 2018, our paid memberships have risen from 111 million to 204 million and our average revenue per membership has grown from $9.88 to $11.02, despite significant F/X (foreign exchange) headwinds,” Netflix said.

“This approach has allowed us to organically increase revenue by $4-$5 billion annually over the past several years,” it added.

For 2020, Netflix roped in record 37 million paid memberships, achieved $25 billion in annual revenue – over 24 percent year over year – and grew operating profit 76 percent to $4.6 billion.

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